Oil & Gas Closing Prices - July 22
Posted: Thu Jul 22, 2021 4:01 pm
Closing Prices:
> WTI prompt month (SEP 21) was up $1.61 on the day, to settle at $71.91/Bbl.
> NG prompt month (AUG 21) was up $0.044 on the day, to settle at $4.003/MMBtu.
If a month ago I said natural gas would be over $4.00 in July you all would have thought me a total wacko. I now think we are going to see the "Mother of all Bidding Wars" in just a few month. About five years ago I attended a conference at the University of Houston and sat next to someone from API. He made the comment that when the U.S. was exporting over 10% of our natural gas (today it is over 15%) that global natural gas prices would begin to have a lot more impact on U.S. domestic gas prices. We may be at the beginning of a "Paradigm Shift" that will draw a lot of attention to our "gassers".
The LNG exporters will pay whatever is needed to fill the demand for U.S. gas. My guess is that they are buying up futures contracts for the winter months already. The utility companies are required by law to maintain pressure in the residential natural gas supply networks. We saw some pay over $50/MMBtu during Winter Storm Uri.
SilverBow Resources (SBOW) is one of two "gassers" in our Small-Cap Growth Portfolio. I just noticed that since my June 22 newsletter the First Call price target for SBOW has increased from $9.83 to $30.50. At least a few of the Wall Street Gang are starting to feel the "Paradigm Shift". My valuation of SBOW is $44.00.
> WTI prompt month (SEP 21) was up $1.61 on the day, to settle at $71.91/Bbl.
> NG prompt month (AUG 21) was up $0.044 on the day, to settle at $4.003/MMBtu.
If a month ago I said natural gas would be over $4.00 in July you all would have thought me a total wacko. I now think we are going to see the "Mother of all Bidding Wars" in just a few month. About five years ago I attended a conference at the University of Houston and sat next to someone from API. He made the comment that when the U.S. was exporting over 10% of our natural gas (today it is over 15%) that global natural gas prices would begin to have a lot more impact on U.S. domestic gas prices. We may be at the beginning of a "Paradigm Shift" that will draw a lot of attention to our "gassers".
The LNG exporters will pay whatever is needed to fill the demand for U.S. gas. My guess is that they are buying up futures contracts for the winter months already. The utility companies are required by law to maintain pressure in the residential natural gas supply networks. We saw some pay over $50/MMBtu during Winter Storm Uri.
SilverBow Resources (SBOW) is one of two "gassers" in our Small-Cap Growth Portfolio. I just noticed that since my June 22 newsletter the First Call price target for SBOW has increased from $9.83 to $30.50. At least a few of the Wall Street Gang are starting to feel the "Paradigm Shift". My valuation of SBOW is $44.00.