Oil & Gas Prices - April 23
Posted: Thu Apr 23, 2020 11:05 am
Opening Prices (June NYMEX contracts):
> WTI opened at $14.20, $0.44 higher than yesterday's closing price.
> Natural gas opened at $2.041, $0.012 lower than yesterday's closing price.
WTI moved higher after the open as traders seem to believe the worst is over, but it is hard to see how today's jobs report was encouraging. Lower unemployment claims is good, but still terrible unemployment and poverty are going to be bad through the summer. IMO this is just "less fear" bring money back to equities.
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Reuters
Weekly jobless claims fell to 4.43 million from a revised 5.24 million, but it was still staggering and took the total in the past five weeks to a record 26 million, wiping out all the U.S. jobs created since the global financial crisis.
"The decline in initial jobless claims is encouraging, but the damage has already been done with the insured unemployment rate surging to a record high in the (previous) week," said Paul Ashworth, chief U.S. economist at Capital Economics.
The energy index (SPNY) gained the most among the 11 S&P 500 sectors as oil prices recovered in a tumultuous week that saw U.S. crude futures crash below zero for the first time in history. < Keep your fingers crossed that traders close their June longs way before the expiration date approaches.
U.S. stock indexes have rallied this month on a raft of global stimulus, but the benchmark S&P 500 remains more than 15% below its record high as worsening economic indicators foreshadow a deep global recession.
A survey showed U.S. business activity plumbed new record lows in April, mirroring dire figures from Europe and Asia as strict stay-at-home orders crushed production, supply chains and consumer spending.
Still, the mood was risk-on with the only decliners among S&P 500 sub-indexes being defensive utilities (SPLRCU) and consumer staples (SPLRCS). The banking sub-sector <.SPXBK> tracked a slight rise in Treasury yields.
The CBOE volatility index (VIX) has retreated from 12-year peaks hit last month, but remains well above levels seen in the past two years and analysts have warned of another selloff as Corporate America issues worrying forecasts for the year.
"What we are looking for is the turning point where the more cyclical companies start to outperform," said Bill Callahan, investment strategist at Schroders (LON:SDR) in New York.
"So when we see light at the end of the tunnel, you will start to see industrial, financials, maybe even energy companies start to do better and outperform."
Meanwhile, Congress was preparing nearly $500 billion more in aid for small businesses and hospitals, which is expected to clear the House of Representatives later in the day. < My hope is that Trump can deliver on his promise to support the oil & gas industry. IMO all that's needed is a loan package that allows upstream companies to get through the next 9-12 months. Filling the SPR and banning oil imports would also help.
> WTI opened at $14.20, $0.44 higher than yesterday's closing price.
> Natural gas opened at $2.041, $0.012 lower than yesterday's closing price.
WTI moved higher after the open as traders seem to believe the worst is over, but it is hard to see how today's jobs report was encouraging. Lower unemployment claims is good, but still terrible unemployment and poverty are going to be bad through the summer. IMO this is just "less fear" bring money back to equities.
------------------------
Reuters
Weekly jobless claims fell to 4.43 million from a revised 5.24 million, but it was still staggering and took the total in the past five weeks to a record 26 million, wiping out all the U.S. jobs created since the global financial crisis.
"The decline in initial jobless claims is encouraging, but the damage has already been done with the insured unemployment rate surging to a record high in the (previous) week," said Paul Ashworth, chief U.S. economist at Capital Economics.
The energy index (SPNY) gained the most among the 11 S&P 500 sectors as oil prices recovered in a tumultuous week that saw U.S. crude futures crash below zero for the first time in history. < Keep your fingers crossed that traders close their June longs way before the expiration date approaches.
U.S. stock indexes have rallied this month on a raft of global stimulus, but the benchmark S&P 500 remains more than 15% below its record high as worsening economic indicators foreshadow a deep global recession.
A survey showed U.S. business activity plumbed new record lows in April, mirroring dire figures from Europe and Asia as strict stay-at-home orders crushed production, supply chains and consumer spending.
Still, the mood was risk-on with the only decliners among S&P 500 sub-indexes being defensive utilities (SPLRCU) and consumer staples (SPLRCS). The banking sub-sector <.SPXBK> tracked a slight rise in Treasury yields.
The CBOE volatility index (VIX) has retreated from 12-year peaks hit last month, but remains well above levels seen in the past two years and analysts have warned of another selloff as Corporate America issues worrying forecasts for the year.
"What we are looking for is the turning point where the more cyclical companies start to outperform," said Bill Callahan, investment strategist at Schroders (LON:SDR) in New York.
"So when we see light at the end of the tunnel, you will start to see industrial, financials, maybe even energy companies start to do better and outperform."
Meanwhile, Congress was preparing nearly $500 billion more in aid for small businesses and hospitals, which is expected to clear the House of Representatives later in the day. < My hope is that Trump can deliver on his promise to support the oil & gas industry. IMO all that's needed is a loan package that allows upstream companies to get through the next 9-12 months. Filling the SPR and banning oil imports would also help.