Oil & Gas Prices - Sept 4
Posted: Fri Sep 04, 2020 10:57 am
Opening Prices:
> WTI is down 3c to $41.34/Bbl, and Brent is down 12c to $43.95/Bbl.
> Natural gas is up 3.2c to $2.519/MMBtu.
IMO the pullback in oil prices is just a bit of FEAR heading into the holiday weekend. Traders set their stop loss orders tight before taking off early for a long weekend. So, just a few large sell orders can cause a selloff. Nothing fundamental has changed. Demand still exceeds production and U.S. and OECD inventories will continue to fall.
Closing Prices:
> WTI prompt month (OCT 20) was down $1.60 on the day, to settle at $39.77/Bbl.
> In contrast, NG prompt month (OCT 20) was up $0.101 on the day, to settle at $2.588/MMBtu.
Near-term outlook for the "gassers" is much better because natural gas and NGL prices are going up no matter what happens with COVID-19. Why? because we are not completing enough wells to avoid a significant decline in natural gas production this winter. If not for gas storage being so high today, the ngas price would be over $4.00/MMBtu now.
> WTI is down 3c to $41.34/Bbl, and Brent is down 12c to $43.95/Bbl.
> Natural gas is up 3.2c to $2.519/MMBtu.
IMO the pullback in oil prices is just a bit of FEAR heading into the holiday weekend. Traders set their stop loss orders tight before taking off early for a long weekend. So, just a few large sell orders can cause a selloff. Nothing fundamental has changed. Demand still exceeds production and U.S. and OECD inventories will continue to fall.
Closing Prices:
> WTI prompt month (OCT 20) was down $1.60 on the day, to settle at $39.77/Bbl.
> In contrast, NG prompt month (OCT 20) was up $0.101 on the day, to settle at $2.588/MMBtu.
Near-term outlook for the "gassers" is much better because natural gas and NGL prices are going up no matter what happens with COVID-19. Why? because we are not completing enough wells to avoid a significant decline in natural gas production this winter. If not for gas storage being so high today, the ngas price would be over $4.00/MMBtu now.