Oil & Gas Prices - June 25

[dan_s]

Oil Prices:
> WTI is down $2.71 to $37.12/Bbl, and Brent is down $2.57 to $39.62/Bbl.
> Natural gas is down 4.2c to $1.555/MMBtu.

Oil rebounding in afternoon trading.

[dan_s]

Closing Prices:
> WTI prompt month (AUG 20) was up $0.71 on the day, to settle at $38.72/Bbl.
> NG prompt month (JUL 20) was down $0.115 on the day, to settle at $1.482/MMBtu.

During the last week of each month the front month NYMEX contract for oil "rolls over". August is now the front month. As hedge fund managers roll forward their positions the price volatility can be higher than normal. Some large funds can't or just don't like to hold large positions in the front month contracts since they cannot take physical delivery of the oil.

[dan_s]

JPMorgan has doubled-down on an earlier prediction of a "bullish supercycle" that could take oil prices well past $100/barrel due to a dramatic supply deficit.

Christyan Malek, JPMorgan's head of Europe, Middle East and Africa oil and gas research, has reiterated an earlier bullish note where he had predicted that oil prices could soar to $190/barrel due to dramatic capex cuts by producers, among other factors.

Global oil hasn't seen $100-a-barrel prices since 2014, with $145/barrel in early 2008 serving as the high watermark for two decades.

https://oilprice.com/Energy/Energy-Gene ... 0-Oil.html