Energy markets in undeserved “funk”
https://youtu.be/_jMGok6iW6A?si=kZvTWYeon-XIFDqF
Eric Nutall Update
Re: Eric Nutall Update
I agree with Eric:
> U.S. Big 3 inventories (crude oil, gasoline and diesel) are below normal for this time of year. OECD petroleum inventories are very low measured on Days of Demand.
> FEAR of Drill Baby Drill is WAY ABOVE REALITY. U.S. oil production will only go up if oil prices are higher.
> FEAR of the tariffs on Canadian oil and gas is also going to fade. Team Trump knows tariffs on oil imports will increase fuel prices and inflation.
> Natural gas prices have pulled back because the price you see is now the MAR25 NYMEX contract. The U.S. won't have a supply problem in March. The supply problem will be when U.S. gas in storage cannot be rebuilt before the next winter heating season begins. The Bidding War for gas supply will be in Q3.
> The noise from China AI is not a near-term issue for natural gas demand.
> U.S. Big 3 inventories (crude oil, gasoline and diesel) are below normal for this time of year. OECD petroleum inventories are very low measured on Days of Demand.
> FEAR of Drill Baby Drill is WAY ABOVE REALITY. U.S. oil production will only go up if oil prices are higher.
> FEAR of the tariffs on Canadian oil and gas is also going to fade. Team Trump knows tariffs on oil imports will increase fuel prices and inflation.
> Natural gas prices have pulled back because the price you see is now the MAR25 NYMEX contract. The U.S. won't have a supply problem in March. The supply problem will be when U.S. gas in storage cannot be rebuilt before the next winter heating season begins. The Bidding War for gas supply will be in Q3.
> The noise from China AI is not a near-term issue for natural gas demand.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group