Opening Prices:
> WTI is down 31c to $82.33/Bbl, and Brent is down 15c to $84.52/Bbl.
> Natural gas is down 24.7c to $4.610/MMBtu.
Oil & Gas Prices - Jan 13
Oil & Gas Prices - Jan 13
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil & Gas Prices - Jan 13
West Texas Intermediate hovered between $82-$83/Bbl Thursday morning after settling at a two-month high of $82.64/Bbl yesterday
Demand has been resilient in the face of the Omicron variant while global oil supply has come under pressure
U.S. stockpiles fell last week, adding to an increasingly tight supply picture
The International Energy Agency says demand is stronger than expected (Bloomberg)
The U.S. government EIA’s latest outlook showed that global inventories are set to decline this quarter
“Market sentiment has been positive as Omicron concerns abate and the expectation of continued dynamic development,” said Carsten Fritsch an analyst at Commerzbank AG
The EIA reported U.S. crude stockpiles sank to the lowest since 2018 for the week ended January 7
Oil inventories fell 4.55 MMBbl as analysts were expecting a decline closer to 2 MMBbl
Stocks at the Cushing storage hub dropped by 2.5 MMBbl to 34.8 MMBbl
U.S. crude output fell by 100 MBbl/d during the week to 11.7 MMBbl/d
Gas prices have retreated by 24.7c this morning, to $4.61, after posting a 60c gain during yesterday’s trading session
The fall would be the first in the last five trading sessions as the late start to winter has caused gas bulls to return to the fray. The prompt contract rallied about 30% year-to-date through yesterday’s close for its best start to a year since 1990
The prompt-month contract settled at a six-week high of $4.857, or its highest seasonal level since 2010. The rally extended beyond the prompt contract as the Cal ’22 strip also gained 26.2c, though it has backed off this morning
The EIA is expected to report a 178-Bcf draw on inventories for the week ending January 7 (Bloomberg)
If confirmed, the draw would be the largest of the winter season so far, and total gas inventories in storage would fall to 3.017 Tcf
The ICE end-of-season number serves as a proxy for where traders see inventories exiting the heating season. Over the last week, the number has decreased from 1.600 Tcf to 1.515 Tcf, showing that the cooler weather forecasts are starting to spill into storage projections
Many analysts expect the U.S. to post draws in the 150 – 200 Bcf range this month as a tight S&D balance, cooler weather, and a slow return of production increase the need to pull from inventories
Demand has been resilient in the face of the Omicron variant while global oil supply has come under pressure
U.S. stockpiles fell last week, adding to an increasingly tight supply picture
The International Energy Agency says demand is stronger than expected (Bloomberg)
The U.S. government EIA’s latest outlook showed that global inventories are set to decline this quarter
“Market sentiment has been positive as Omicron concerns abate and the expectation of continued dynamic development,” said Carsten Fritsch an analyst at Commerzbank AG
The EIA reported U.S. crude stockpiles sank to the lowest since 2018 for the week ended January 7
Oil inventories fell 4.55 MMBbl as analysts were expecting a decline closer to 2 MMBbl
Stocks at the Cushing storage hub dropped by 2.5 MMBbl to 34.8 MMBbl
U.S. crude output fell by 100 MBbl/d during the week to 11.7 MMBbl/d
Gas prices have retreated by 24.7c this morning, to $4.61, after posting a 60c gain during yesterday’s trading session
The fall would be the first in the last five trading sessions as the late start to winter has caused gas bulls to return to the fray. The prompt contract rallied about 30% year-to-date through yesterday’s close for its best start to a year since 1990
The prompt-month contract settled at a six-week high of $4.857, or its highest seasonal level since 2010. The rally extended beyond the prompt contract as the Cal ’22 strip also gained 26.2c, though it has backed off this morning
The EIA is expected to report a 178-Bcf draw on inventories for the week ending January 7 (Bloomberg)
If confirmed, the draw would be the largest of the winter season so far, and total gas inventories in storage would fall to 3.017 Tcf
The ICE end-of-season number serves as a proxy for where traders see inventories exiting the heating season. Over the last week, the number has decreased from 1.600 Tcf to 1.515 Tcf, showing that the cooler weather forecasts are starting to spill into storage projections
Many analysts expect the U.S. to post draws in the 150 – 200 Bcf range this month as a tight S&D balance, cooler weather, and a slow return of production increase the need to pull from inventories
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group