Oil & Gas Prices - August 17

[dan_s]

Opening Prices:
> WTI is down 16c to $41.85/Bbl, and Brent is down 23c to $44.57/Bbl < Within 20 minutes after the markets opened WTI was up 45 cents.
> Natural gas is down 1.6c to $2.340/MMBtu

Wednesday morning's OPEC+ meeting notes followed by the EIA Petroleum Report a few hours later could set up higher oil prices.

[dan_s]

Closing Prices:
> WTI prompt month (SEP 20) was up $0.88 on the day, to settle at $42.89/Bbl.
> In contrast, NG prompt month (SEP 20) was down $0.017 on the day, to settle at $2.339/MMBtu.

$42.50 has been a strong resistance level, so if WTI can stay above that level it would be a significant step back to $50.

From the CME Group Oil Market Wrap-Up:
Bullish Signs
> Chinese Stimulus program increases their oil demand
> U.S. Active Rig Count at a 15 year low and there are no signs that upstream companies will be adding a lot more rigs this year (I told you so)
> OPEC+ meeting this week is expected to report a lower increase in the cartels production than expected because Iraq says they will reduce production to make up for over-producing before
> U.S. Dollar weakness
> Less oil being imported into the U.S.
> Signs that demand for transportation fuels is improving
> CME says next levels of resistance for WTI are $43.02 and $43.52.