Oil & Gas Closing Prices - July 21
Posted: Wed Jul 21, 2021 3:14 pm
Closing Prices:
> WTI prompt month (SEP 21) was up $3.10 on the day, to settle at $70.30/Bbl.
> NG prompt month (AUG 21) was up $0.083 on the day, to settle at $3.959/MMBtu.
From Investing.com
Markets continued their upward march on Wednesday and yields climbed due partly to positive corporate earnings, despite apprehension about the Delta coronavirus variant and inflation, which spurred a flight to safety earlier in the week. < MY TAKE (and this is strictly my opinion): We cannot shutdown the global economy each time a new variant of Covid-19 or any other bug shows up. This is not "Paradise" where we all get to live forever. Our smart doctors and research people need to figure out how to treat people that get sick and do the best they can to cure illness. Shutdowns and masks didn't before, so why would they work now anyway?
Wall Street extended gains after ending Tuesday sharply higher when it snapped a several-day losing streak. Yields on U.S. treasuries rose as markets regained a sense of calm.
Positive earnings from major companies, including Verizon Communications Inc (NYSE:VZ), Coca-Cola (NYSE:KO) Co United Airlines and Chipotle Mexican Grill (NYSE:CMG), helped fuel the gains.
“There’s a lot of nice follow-through from yesterday. On Monday there was a growth scare, and on Tuesday we recovered from that. Investors realized it was an over-reaction,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “Today is a continuation from yesterday showing that although global growth may be impacted in the short run, we ultimately are still on a recovery path, and it makes sense to stay long the market."
"I think the big issue out there that we see from investors is where else can I go to make money except the stock market?," said Gary Bradshaw, portfolio manager at Hodges Capital Management in Dallas. "With a very accommodating Fed, saying they’re not going to raise rates out until 2022 or longer, the market should continue to do well."
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The global oil market is tight and will get a lot tighter even with OPEC+ adding 400,000 BOPD to supply each month. Demand for oil exceeded supply by at least 1.2 million BOPD in June, per IEA.
The U.S. natural gas market is tight already and may go to being "dangerously tight" based on the current weather forecast. As I said in my podcasts months ago, as long as demand for U.S. LNG stays high (and today it is VERY HIGH) it will be difficult if not impossible for U.S. natural gas in storage to get back to the 5-year average before the next winter heating season. All of our "gassers" are Screaming Buys based on the NYMEX Strip for HH gas.
> WTI prompt month (SEP 21) was up $3.10 on the day, to settle at $70.30/Bbl.
> NG prompt month (AUG 21) was up $0.083 on the day, to settle at $3.959/MMBtu.
From Investing.com
Markets continued their upward march on Wednesday and yields climbed due partly to positive corporate earnings, despite apprehension about the Delta coronavirus variant and inflation, which spurred a flight to safety earlier in the week. < MY TAKE (and this is strictly my opinion): We cannot shutdown the global economy each time a new variant of Covid-19 or any other bug shows up. This is not "Paradise" where we all get to live forever. Our smart doctors and research people need to figure out how to treat people that get sick and do the best they can to cure illness. Shutdowns and masks didn't before, so why would they work now anyway?
Wall Street extended gains after ending Tuesday sharply higher when it snapped a several-day losing streak. Yields on U.S. treasuries rose as markets regained a sense of calm.
Positive earnings from major companies, including Verizon Communications Inc (NYSE:VZ), Coca-Cola (NYSE:KO) Co United Airlines and Chipotle Mexican Grill (NYSE:CMG), helped fuel the gains.
“There’s a lot of nice follow-through from yesterday. On Monday there was a growth scare, and on Tuesday we recovered from that. Investors realized it was an over-reaction,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “Today is a continuation from yesterday showing that although global growth may be impacted in the short run, we ultimately are still on a recovery path, and it makes sense to stay long the market."
"I think the big issue out there that we see from investors is where else can I go to make money except the stock market?," said Gary Bradshaw, portfolio manager at Hodges Capital Management in Dallas. "With a very accommodating Fed, saying they’re not going to raise rates out until 2022 or longer, the market should continue to do well."
--------------------------------
The global oil market is tight and will get a lot tighter even with OPEC+ adding 400,000 BOPD to supply each month. Demand for oil exceeded supply by at least 1.2 million BOPD in June, per IEA.
The U.S. natural gas market is tight already and may go to being "dangerously tight" based on the current weather forecast. As I said in my podcasts months ago, as long as demand for U.S. LNG stays high (and today it is VERY HIGH) it will be difficult if not impossible for U.S. natural gas in storage to get back to the 5-year average before the next winter heating season. All of our "gassers" are Screaming Buys based on the NYMEX Strip for HH gas.