Oil & Gas Prices - May 20

[dan_s]

Opening Prices:
> WTI is up 82c to $32.78/Bbl, and Brent is up 94c to $35.59/Bbl.
> Natural gas is up 4.7c to $1.877/MMBtu.

Closing Prices;
> WTI prompt month (JUL 20) was up $1.53 on the day, to settle at $33.49/Bbl.
> NG prompt month (JUN 20) was down $0.059 on the day, to settle at $1.771/MMBtu.
Today was the first day of trading that the July NYMEX contract for WTI crude was the "front month". I was a bit worried that the run up in the last two days of trading of the June contract was just a short covering rally. The fact that the July contract rose today is very bullish.

API storage report yesterday afternoon was bullish. Let's see if EIA confirm increasing demand for oil.
As Southeast quarter of U.S. heats up more and more gas fired power plants ramp up. Plus, we are seeing first confirmations that natural gas production is down YOY.

Stifel: "Our last pipeline flow note titled Real Time Insights on Associated Gas Shut-Ins, LNG and MX Exports, and Domestic Natural Gas Demand
caught a good amount of interest and we enhanced our product based on the feedback provided and questions received. The biggest news
of this week is that EQT shut in 1.4 bcf/d of gross production in May. While multiple Appalachian producers talked about deferring 2Q20
production and activity levels into stronger natural gas environment later this year and 2021, EQT's deferral is truly making a statement.
Another key development to watch is a material degradation in LNG feedstock demand with volumes collapsing materially over the past few
weeks. Net-net shut-ins should more than offset lower LNG and MX exports as well as domestic demand that is under the weather with
Covid-19 and we expect short-term improvement in fundamentals to be reflected in future weekly storage updates."