At 10:30 AM ET
> WTI oil up $1.90 to $72.28
> HH ngas up $0.13 to $2.70
Trading Economics opening comments
Oil
"WTI crude futures rebounded 2.5% to $72 per barrel on Wednesday morning, prompted by signs of supply disruption in Libya, where protests led to the shutdown of the country's largest oil field, Sharara. This field had been producing approximately 300,000 barrels per day. On Tuesday, crude oil dropped nearly 2% as investors scaled back expectations for significant interest rate cuts by major central banks. Rising global supplies, particularly from non-OPEC producers, and an uncertain demand outlook continued to weigh on the market. Geopolitical tensions were another area of concern, as Iran deployed a warship in the Red Sea to challenge US forces in a vital trade route. Over the weekend, US Navy helicopters destroyed three Houthi boats whose crew attempted to board a container ship in the Red Sea, killing several people in the process."
Natural Gas
"US natural gas futures traded around $2.6/MMBtu in early 2024, driven by increased seasonal demand amid the anticipated cold weather in January. US natgas prices were also supported by a surge in exports, as gas flows to LNG export facilities reached an all-time high in December. However, record-high domestic natural gas production in the US has allowed utilities to build reserves, with the latest figures showing inventories 10% above the seasonal average. In 2023, natural gas prices in the US declined by 39.2%."
Oil & Gas Prices - Jan 3
Oil & Gas Prices - Jan 3
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil & Gas Prices - Jan 3
This might have something to do with today's spike in the oil price.
A pair of explosions near the grave of Iranian general Qassem Soleimani killed at least 103 people and wounded up to 141 more in Kerman, Iran, according to Wednesday reports from Iranian media.
Iranian officials say the explosions occurred during a ceremony honoring Soleimani on the fourth anniversary of his death.
Soleimani was killed in 2020 at the hands of a U.S. drone strike ordered by then-President Trump.
"The blasts were caused by terrorist attacks," Iranian media quoted a local official as saying, without accusing any specific party. "Several gas canisters exploded on the road leading to the cemetery."
The explosions come amid severe tensions between Iran, the U.S. and Israel. Iran's proxy terrorist groups have attacked U.S. bases in Iraq and Syria more than 100 times since October, and Iran-backed Houthi rebels in Yemen have harassed trade in the Red Sea. Hezbollah, another Iran-supported group, has threatened Israel's northern border with drone attacks.
Hezbollah media confirmed on Tuesday that a drone attack had killed a senior Hamas leader in Beirut, Lebanon.
Israel did not claim responsibility for the attack, but Prime Minister Benjamin Netanyahu's administration noted its "surgical" nature.
"Israel has not taken responsibility for this attack. But whoever did it must be clear that this was not an attack on the Lebanese state," Netanyahu adviser Ambassador Mark Regev told MSNBC. "It was not even an attack on Hezbollah terrorist organization. Whoever did this did a surgical strike against the Hamas leadership."
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Also, two major winter storms are going to hit the Northeast over the next seven days; increasing demand for heating oil.
A pair of explosions near the grave of Iranian general Qassem Soleimani killed at least 103 people and wounded up to 141 more in Kerman, Iran, according to Wednesday reports from Iranian media.
Iranian officials say the explosions occurred during a ceremony honoring Soleimani on the fourth anniversary of his death.
Soleimani was killed in 2020 at the hands of a U.S. drone strike ordered by then-President Trump.
"The blasts were caused by terrorist attacks," Iranian media quoted a local official as saying, without accusing any specific party. "Several gas canisters exploded on the road leading to the cemetery."
The explosions come amid severe tensions between Iran, the U.S. and Israel. Iran's proxy terrorist groups have attacked U.S. bases in Iraq and Syria more than 100 times since October, and Iran-backed Houthi rebels in Yemen have harassed trade in the Red Sea. Hezbollah, another Iran-supported group, has threatened Israel's northern border with drone attacks.
Hezbollah media confirmed on Tuesday that a drone attack had killed a senior Hamas leader in Beirut, Lebanon.
Israel did not claim responsibility for the attack, but Prime Minister Benjamin Netanyahu's administration noted its "surgical" nature.
"Israel has not taken responsibility for this attack. But whoever did it must be clear that this was not an attack on the Lebanese state," Netanyahu adviser Ambassador Mark Regev told MSNBC. "It was not even an attack on Hezbollah terrorist organization. Whoever did this did a surgical strike against the Hamas leadership."
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Also, two major winter storms are going to hit the Northeast over the next seven days; increasing demand for heating oil.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group