Oil rises on China demand hopes and supply concerns. Reuters.
Europe: Oil prices rose on Monday, buoyed by optimism over Chinese demand, continued production curbs by major producers and Russia's plans to rein in supply. Brent crude rose 51 cents, or 0.6%, to $83.51 a barrel by 1210 GMT. U.S. West Texas Intermediate (WTI) crude for March, which expires on Tuesday, was up 43 cents, or 0.6%, at $76.77 while the more active April contract gained 0.6% to $77.02. The benchmarks settled $2 down on Friday for a decline of about 4% over the week after the United States reported higher crude and gasoline inventories.
Oil & Gas Prices - Feb 20
Oil & Gas Prices - Feb 20
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil & Gas Prices - Feb 20
Bloomberg
Oil rose after a weekly loss on hopes that a Chinese demand rebound is picking up pace following the end of the Asian nation’s Covid Zero policy, outweighing hawkish signals from the Federal Reserve.
Brent climbed above $84 a barrel, while US futures snapped the longest run of daily declines this year. Signs are emerging of a recovery in Chinese oil demand, though the prospect of further monetary tightening from the Fed to combat inflation is keeping a lid on crude prices. Trading may be thin due to a US holiday.
Oil has endured a bumpy start to 2023 as investors juggle persistent concerns over a global economic slowdown and optimism around China’s reopening. The fallout from sanctions on Russian energy and the rerouting of global flows has added another element of uncertainty to the global market, with exports climbing again last week.
“We still expect the market to eventually turn its attention to an expected tighter oil market balance in the second half and the Chinese reopening,” said Arne Lohmann Rasmussen, head of research at A/S Global Risk Management Ltd. “More robust data currently fuel expectations that the Fed will have to hike rates to a higher level and keep them there for an extended period.”
The US plans to impose new export controls and fresh sanctions on Russia, targeting key industries a year after the invasion of Ukraine. The measures will target the nation’s defense and energy sectors, financial institutions and several individuals, according to people familiar with the matter.
Oil rose after a weekly loss on hopes that a Chinese demand rebound is picking up pace following the end of the Asian nation’s Covid Zero policy, outweighing hawkish signals from the Federal Reserve.
Brent climbed above $84 a barrel, while US futures snapped the longest run of daily declines this year. Signs are emerging of a recovery in Chinese oil demand, though the prospect of further monetary tightening from the Fed to combat inflation is keeping a lid on crude prices. Trading may be thin due to a US holiday.
Oil has endured a bumpy start to 2023 as investors juggle persistent concerns over a global economic slowdown and optimism around China’s reopening. The fallout from sanctions on Russian energy and the rerouting of global flows has added another element of uncertainty to the global market, with exports climbing again last week.
“We still expect the market to eventually turn its attention to an expected tighter oil market balance in the second half and the Chinese reopening,” said Arne Lohmann Rasmussen, head of research at A/S Global Risk Management Ltd. “More robust data currently fuel expectations that the Fed will have to hike rates to a higher level and keep them there for an extended period.”
The US plans to impose new export controls and fresh sanctions on Russia, targeting key industries a year after the invasion of Ukraine. The measures will target the nation’s defense and energy sectors, financial institutions and several individuals, according to people familiar with the matter.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil & Gas Prices - Feb 20
Dan,
Thanks for the explanation of how paper traders are forced to take losses on gas contracts, thus driving down front month gas prices.
Looking forward at the NOAA climate predictions this summer, it looks bullish to me for utility draws.
https://www.cpc.ncep.noaa.gov/products/ ... php?lead=4
Kevin
Thanks for the explanation of how paper traders are forced to take losses on gas contracts, thus driving down front month gas prices.
Looking forward at the NOAA climate predictions this summer, it looks bullish to me for utility draws.
https://www.cpc.ncep.noaa.gov/products/ ... php?lead=4
Kevin
Re: Oil & Gas Prices - Feb 20
If every month traders are forced to take losses:
Why(as we are super smart traders of Energy Prospectus) don't we short NG 2 weeks from expiration and then cover on day of expiration and make millions?
I think the better explanation is weather (warmer) combined with Freeport slipping is causing a short term glut which is forcing prices down, Has nothing to do with closing out contracts. Producers are still producing like NG is at 10. They can't stop on a dime. They have drilling contracts, completion crews contracted , pipe bought, etc. The market doesn't need the NG thus the price falls. Simple as that.
Every week, I hear Bastardi says it will be cold. Every week he has been wrong. I pointed out many many weeks ago that Celsius Energy modeling had much lower weekly draws, In fact we had an injection in the middle of winter.
There is too much NG floating in the Eastern area of US. Too much supply = lower prices
Why(as we are super smart traders of Energy Prospectus) don't we short NG 2 weeks from expiration and then cover on day of expiration and make millions?
I think the better explanation is weather (warmer) combined with Freeport slipping is causing a short term glut which is forcing prices down, Has nothing to do with closing out contracts. Producers are still producing like NG is at 10. They can't stop on a dime. They have drilling contracts, completion crews contracted , pipe bought, etc. The market doesn't need the NG thus the price falls. Simple as that.
Every week, I hear Bastardi says it will be cold. Every week he has been wrong. I pointed out many many weeks ago that Celsius Energy modeling had much lower weekly draws, In fact we had an injection in the middle of winter.
There is too much NG floating in the Eastern area of US. Too much supply = lower prices