Oil & Gas Prices - June 10

[dan_s]

Opening Prices:
> WTI is down 57c to $38.37/Bbl, and Brent is down 53c to $40.65/Bbl.
> Natural gas is up 0.2c to $1.769/MMBtu.

As I've told you during my last two podcasts, the "Devil is in the Details" of the EIA's weekly report.

Oil futures settled higher on Wednesday, with U.S. oil prices posting a second straight gain. Prices had spent part of the session moving lower after the Energy Information Administration reported a climb of 5.7 million barrels in last week's U.S. crude inventories, but the data also revealed a fall in domestic production and a decline in stocks at the Cushing, Okla., storage hub. The Federal Reserve, meanwhile, said it doesn't expect to lift short-term interest rates through the end of 2022. The "U.S. dollar is getting hammered after the Fed's statement...pushing crude prices [toward] the highs for the day after a bearish-tilted EIA report," said Matt Smith, director of commodity reach at ClipperData. July West Texas Intermediate oil rose 66 cents, or 1.7%, to settle at $39.60 a barrel on the New York Mercantile Exchange.

MY TAKE is that "FEAR of Inflation" is taking hold and crude oil is a hedge against inflation.

[dan_s]

Closing Prices:
> WTI prompt month (JUL 20) was up $0.66 on the day, to settle at $39.60/Bbl.
> NG prompt month (JUL 20) was up $0.013 on the day, to settle at $1.780/MMBtu