Oil & Gas Prices - May 17
Posted: Mon May 17, 2021 5:15 pm
Late with this today because I was at the Mick Law Energy Conference in Dallas. I will be back at my desk early on Tuesday.
We have a webinar on Tuesday, May 18 at 10 AM.
For details and to register go to our website or send an email to Sabrina at energyprospectus@gmail.com.
Closing Prices:
> WTI prompt month (JUN 21) was up $0.90 on the day, to settle at $66.27/Bbl.
> NG prompt month (JUN 21) was up $0.148 on the day, to settle at $3.109/MMBtu.
(Bloomberg) -- Natural gas futures soared the most since February as U.S. weather forecasts turned much hotter, triggering speculation that a boiling summer will boost demand for the power-plant fuel and strain supplies.
For the first time this year, parts of the Mid-Atlantic and Midwest could see temperatures reach 90 degrees Fahrenheit (32 Celsius) or higher starting this weekend, according to Commodity Weather Group.
The rally comes amid the tightest gas market in years. A deep freeze in the central U.S. this winter left stockpiles below normal for the first time since 2019, while exports of liquefied natural gas have climbed to a record, siphoning off domestic supplies. Though hedge funds’ bearish bets on the fuel rose over the past several weeks, the latest forecast likely prompted traders to cover those wagers, according to INTL FCStone Financial.
“The weather looks friendlier” to bulls, said Tom Saal, senior vice president of energy trading at INTL FCStone. Gas for June delivery settled up 5% at $3.109 per million British thermal units on the New York Mercantile Exchange, the biggest gain since Feb. 16 on a closing basis. Producers are injecting gas into underground inventories at a pace that trails the five-year average, signaling tighter supplies ahead of next winter. Stockpiles were 3.4% below normal as of May 7, according to the U.S. Energy Information Administration.
Gas suppliers rallied on higher prices for the commodity.
EQT Corp., the largest U.S. producer of the fuel, jumped 6.4% as of 2:34 p.m. Eastern Time. Antero Resources Corp. and CNX Resources Corp. both rose by 4%. < Today's price spike is also very bullish for Comstock Resources (CRK), Range Resources (RRC), Goodrich Petroleum (GDP), Northern Oil & Gas (NOG) and SilverBow Resources (SBOW).
We have a webinar on Tuesday, May 18 at 10 AM.
For details and to register go to our website or send an email to Sabrina at energyprospectus@gmail.com.
Closing Prices:
> WTI prompt month (JUN 21) was up $0.90 on the day, to settle at $66.27/Bbl.
> NG prompt month (JUN 21) was up $0.148 on the day, to settle at $3.109/MMBtu.
(Bloomberg) -- Natural gas futures soared the most since February as U.S. weather forecasts turned much hotter, triggering speculation that a boiling summer will boost demand for the power-plant fuel and strain supplies.
For the first time this year, parts of the Mid-Atlantic and Midwest could see temperatures reach 90 degrees Fahrenheit (32 Celsius) or higher starting this weekend, according to Commodity Weather Group.
The rally comes amid the tightest gas market in years. A deep freeze in the central U.S. this winter left stockpiles below normal for the first time since 2019, while exports of liquefied natural gas have climbed to a record, siphoning off domestic supplies. Though hedge funds’ bearish bets on the fuel rose over the past several weeks, the latest forecast likely prompted traders to cover those wagers, according to INTL FCStone Financial.
“The weather looks friendlier” to bulls, said Tom Saal, senior vice president of energy trading at INTL FCStone. Gas for June delivery settled up 5% at $3.109 per million British thermal units on the New York Mercantile Exchange, the biggest gain since Feb. 16 on a closing basis. Producers are injecting gas into underground inventories at a pace that trails the five-year average, signaling tighter supplies ahead of next winter. Stockpiles were 3.4% below normal as of May 7, according to the U.S. Energy Information Administration.
Gas suppliers rallied on higher prices for the commodity.
EQT Corp., the largest U.S. producer of the fuel, jumped 6.4% as of 2:34 p.m. Eastern Time. Antero Resources Corp. and CNX Resources Corp. both rose by 4%. < Today's price spike is also very bullish for Comstock Resources (CRK), Range Resources (RRC), Goodrich Petroleum (GDP), Northern Oil & Gas (NOG) and SilverBow Resources (SBOW).