Oil & Gas Closing Prices - July 19
Posted: Mon Jul 19, 2021 3:26 pm
Closing Prices:
> WTI prompt month (AUG 21) was down $5.39 on the day, to settle at $66.42/Bbl.
> In contrast, NG prompt month (AUG 21) was up $0.105 on the day, to settle at $3.779/MMBtu.
MY TAKE:
> FEAR is now in control of the global oil market. Commodity price dips based on FEAR seldom last long.
1. FEAR of OPEC+ oversupplying the oil market is way overblown. Plus, the amount of oil in tankers at sea is very low, so U.S. oil inventories will continue to decline and oil in U.S. storage is near the bottom of the 5-year range.
2. FEAR of an increase in Covid-19 cases is a bit of a worry, but if the Delta Variant is less deadly it won't put the same level of pressure on hospitals. Let's hope so. CNN loves the "Click Bait" so this will hang around for awhile.
> Short will eventually have to cover, so we could see wild price swings both ways.
U.S. natural gas market is going from tight to very tight. Regional biding wars will result in some very high prices. Gas prices in Europe and Japan/Korea are over $12/MMBtu. NGL market also very tightening.
> WTI prompt month (AUG 21) was down $5.39 on the day, to settle at $66.42/Bbl.
> In contrast, NG prompt month (AUG 21) was up $0.105 on the day, to settle at $3.779/MMBtu.
MY TAKE:
> FEAR is now in control of the global oil market. Commodity price dips based on FEAR seldom last long.
1. FEAR of OPEC+ oversupplying the oil market is way overblown. Plus, the amount of oil in tankers at sea is very low, so U.S. oil inventories will continue to decline and oil in U.S. storage is near the bottom of the 5-year range.
2. FEAR of an increase in Covid-19 cases is a bit of a worry, but if the Delta Variant is less deadly it won't put the same level of pressure on hospitals. Let's hope so. CNN loves the "Click Bait" so this will hang around for awhile.
> Short will eventually have to cover, so we could see wild price swings both ways.
U.S. natural gas market is going from tight to very tight. Regional biding wars will result in some very high prices. Gas prices in Europe and Japan/Korea are over $12/MMBtu. NGL market also very tightening.