July 9th: Big week ahead
Posted: Sun Jul 08, 2012 5:00 pm
2nd quarter results start rolling out this week, although most of the energy sector companies will not report until late in the month. There is also a lot of other financial and geopolitical news coming this week that going to drive the markets. Good news from China would support higher oil prices.
I do think we will see more proof that demand for oil and natural gas is going up as we move through the quarter. Last week's NG storage report shows that the heat wave through the South has increased demand for power generation.
"Working gas in storage was 3,102 Bcf as of Friday, June 29, 2012, according to EIA estimates. This represents a net increase of 39 Bcf from the previous week. Stocks were 602 Bcf higher than last year at this time and 573 Bcf above the 5-year average of 2,529 Bcf." < If NG storage is under 3,300 Bcf at the end of July it would be bullish for NG prices as the risk of significant gas-on-gas competition for storage would go down.
What may drive the market this week from Reuters.
http://finance.yahoo.com/news/wall-stre ... 24916.html
I do think we will see more proof that demand for oil and natural gas is going up as we move through the quarter. Last week's NG storage report shows that the heat wave through the South has increased demand for power generation.
"Working gas in storage was 3,102 Bcf as of Friday, June 29, 2012, according to EIA estimates. This represents a net increase of 39 Bcf from the previous week. Stocks were 602 Bcf higher than last year at this time and 573 Bcf above the 5-year average of 2,529 Bcf." < If NG storage is under 3,300 Bcf at the end of July it would be bullish for NG prices as the risk of significant gas-on-gas competition for storage would go down.
What may drive the market this week from Reuters.
http://finance.yahoo.com/news/wall-stre ... 24916.html