Oil & Gas end of day prices - Jan 31

[dan_s]

WTI prompt month (MAR 20) was down $0.58 on the day, to settle at $51.56/Bbl.

In contrast, NG prompt month (MAR 20) was up $0.012 on the day, to settle at $1.841/MMBtu.

FEAR of the Corona Virus has caused all of this selloff. FEAR's seldom turn out to have much impact on oil demand.

[dan_s]

Oil posted its largest monthly loss since May 2019, as fears of the coronavirus continue to rise. The 15 percent price decline is also the worst January performance since 1991, according to Bloomberg. The oil market is “troubled by both rising demand worries and rising fuel stocks,” said Ole Sloth Hansen, head of commodities strategy at Saxo Bank A/S in Copenhagen. “It’s going to take a firm commitment by OPEC+, or rising geopolitical tensions, to achieve a sustained recovery.”

Bernstein: Chinese oil demand growth at just 100,000 bpd. China’s oil demand could grow at just 100,000 bpd this year due to the coronavirus, according to Bernstein. That would make it the slowest expansion in consumption in nearly 20 years. The firm previously predicted 350,000 bpd of growth.

[dan_s]

Goehring & Rozencwajg (G&R) managing partner Adam Rozencwajg believes oil prices could rise to $80/barrel and higher this year and that natural resource equity investments are radically undervalued. In this podcast with Cris Sheridan, Senior Editor at Financial Sense Wealth Management, Mr. Rozencwajg discusses G&R’s 2020 outlook for oil, natural gas (not as bullish), gold (very bullish) and uranium (you guessed it, bullish)! He further elaborates on the massive asset outflows from both dedicated natural resource equity funds and value-based equity funds that have contributed to a significant lag in natural resource equities versus their underlying commodity.

Note that the podcast below was recorded before the corona virus outbreak in China.

Podcast: https://static.financialsense.com/audio ... -51a7e.mp3