Opening Prices:
> WTI is up 9c to $42.28/Bbl, and Brent is up 24c to $45.41/Bbl.
> Natural gas is up 3.8c to $2.229/MMBtu
If natural gas storage report shows a build at or below the 5-year average, the price should stabilize.
This is why demand for natural gas spikes in the summer: https://www.eia.gov/todayinenergy/detail.php?id=44636
Oil & Gas Prices - Aug 6
Oil & Gas Prices - Aug 6
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil & Gas Prices - Aug 6
AEGIS ENERGY Alerts - Gas rally continues; EIA reports small storage increase
EIA reported a build of 33 Bcf for the week ending 7/31/2020. This was larger than the median estimate of 30 Bcf. Today’s stat fell within the expected range, which was 33 Bcf on the more bearish end, and 28 Bcf on the more bullish end.
Prices were down in the five minutes following the announcement, to $2.232, from $2.242 just before 9:30am.
Inventories for the US are now at a surplus of 601 Bcf to last year and a surplus of 429 Bcf to the five-year average.
Less FEAR of storage filling early is all it took to spark a rally: AEGIS notes this week's small injection is cause for optimism as it seems end-of-season storage levels will remain below its capacity of 4.261-Tcf. This is the sixth consecutive below-average build which has helped decrease the storage surplus to last year from 712 Bcf (as-of 06/26) to 601 this week. < Warmer temps in August should drive down the delta to the 5-year average & export demand is increasing as well.
EIA reported a build of 33 Bcf for the week ending 7/31/2020. This was larger than the median estimate of 30 Bcf. Today’s stat fell within the expected range, which was 33 Bcf on the more bearish end, and 28 Bcf on the more bullish end.
Prices were down in the five minutes following the announcement, to $2.232, from $2.242 just before 9:30am.
Inventories for the US are now at a surplus of 601 Bcf to last year and a surplus of 429 Bcf to the five-year average.
Less FEAR of storage filling early is all it took to spark a rally: AEGIS notes this week's small injection is cause for optimism as it seems end-of-season storage levels will remain below its capacity of 4.261-Tcf. This is the sixth consecutive below-average build which has helped decrease the storage surplus to last year from 712 Bcf (as-of 06/26) to 601 this week. < Warmer temps in August should drive down the delta to the 5-year average & export demand is increasing as well.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil & Gas Prices - Aug 6
Closing Prices:
> WTI prompt month (SEP 20) was down $0.24 on the day, to settle at $41.95/Bbl.
> NG prompt month (SEP 20) was down $0.026 on the day, to settle at $2.165/MMBtu.
WTI crude settled 0.6% lower at $41.95 a barrel on Thursday, as support from Iraq’s planned production cuts was tempered by concerns that a rise in coronavirus infections could stall recovery in fuel demand. Iraq, which exceeded output quotas in May and June, said it would make an additional cut in its oil productions of about 400,000 barrels per day in August. Still, a sharp rise in Covid-19 infections in the US has prompted fears of another round of economically damaging lockdowns. Meanwhile, Brent crude ended slightly higher at $45.25 a barrel.
Note that the gap between Brent and WTI has widened because they don't have CNN hyping FEAR of mass death and more shutdowns in Europe. Because of more testing the number of people who have tested positive in a few European countries are up, but death rate continues to fall. Spain seems to be having the most new cases.
> WTI prompt month (SEP 20) was down $0.24 on the day, to settle at $41.95/Bbl.
> NG prompt month (SEP 20) was down $0.026 on the day, to settle at $2.165/MMBtu.
WTI crude settled 0.6% lower at $41.95 a barrel on Thursday, as support from Iraq’s planned production cuts was tempered by concerns that a rise in coronavirus infections could stall recovery in fuel demand. Iraq, which exceeded output quotas in May and June, said it would make an additional cut in its oil productions of about 400,000 barrels per day in August. Still, a sharp rise in Covid-19 infections in the US has prompted fears of another round of economically damaging lockdowns. Meanwhile, Brent crude ended slightly higher at $45.25 a barrel.
Note that the gap between Brent and WTI has widened because they don't have CNN hyping FEAR of mass death and more shutdowns in Europe. Because of more testing the number of people who have tested positive in a few European countries are up, but death rate continues to fall. Spain seems to be having the most new cases.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group