Oil & Gas Prices - June 24

[dan_s]

Trading Economics:

WTI crude oil futures firmed near $81.50 per barrel on Monday as traders balanced expectations of increased summer demand and geopolitical tensions against a stronger dollar.
> Confidence is growing that global oil inventories will significantly decrease during the northern hemisphere's summer.
> Geopolitical risks, including tensions in the Middle East and increased Ukrainian drone attacks on Russian refineries, are also supporting oil prices.
> The EU has agreed on new sanctions against Russia, including a ban on reloading Russian liquefied natural gas (LNG) in the EU for further shipment to third countries.
> Ecuador's state oil company Petroecuador declared force majeure on Napo heavy crude exports after heavy rain caused shutdowns of a key pipeline and oil wells.
> However, a stronger U.S. dollar has made dollar-denominated commodities less attractive to holders of other currencies.

At $2.81 HH Natural gas is up 12.3% in the last 30 days and 21% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity.
> Historically, Natural gas reached an all time high of 15.78 in December of 2005.
> In August 2022 HH ngas spike to $9.30/MMBtu during a bidding war between utility companies and LNG exporters. If all three of the large LNG export facilities do come on line in the next 9 months AND we have a normal winter, there could be a natural gas supply shortage next summer.