Oil & Gas Prices - April 24
Posted: Fri Apr 24, 2020 9:40 am
Opening Prices (June NYMEX Contract):
> WTI opened at $16.78, up $0.28 from Thursday's close
> Natural gas opened at $1.908, down $0.013 from Thursday's close
Lack of available crude oil storage space will be the primary driver through May. I expect a lot of upstream companies to announce shut-ins when they release Q1 results. Well completions have almost come to a complete halt, so look for U.S. oil production to decline by 2.5 to 3.0 million barrels per day from now through at least July. My guess is that over a million barrels of oil per day from stripper wells in the U.S. is sub-economic as long as oil is under $25/bbl.
Historically natural gas prices have moved higher in May in anticipation of a spike in demand for power generation.
> WTI opened at $16.78, up $0.28 from Thursday's close
> Natural gas opened at $1.908, down $0.013 from Thursday's close
Lack of available crude oil storage space will be the primary driver through May. I expect a lot of upstream companies to announce shut-ins when they release Q1 results. Well completions have almost come to a complete halt, so look for U.S. oil production to decline by 2.5 to 3.0 million barrels per day from now through at least July. My guess is that over a million barrels of oil per day from stripper wells in the U.S. is sub-economic as long as oil is under $25/bbl.
Historically natural gas prices have moved higher in May in anticipation of a spike in demand for power generation.