Oil & Gas Prices - January 11

[dan_s]

The crude oil complex trended lower throughout the US morning hours, pressured by ideas that accelerating Chinese inflation could temper further Central Bank monetary easing. Some traders indicated that the positive tone from yesterday waned and seemed to attract profit-taking selling. Meanwhile, the completion of the Seaway pipeline expansion effort weighed especially heavy on Brent crude oil. As a result, the spread differential between February Brent and WTI crude oil fell more than a dollar and back below the $17 level. February natural gas prices rallied throughout the morning, supported by the latest weather maps that turn colder later in the month.

Crude oil continues to build strong support in the $93/bbl range. This is very bullish for our Sweet 16.

Thursday's natural gas storage report was very bullish, at least to me. IMO it shows that the utilities are still using a lot of NG for power generation. The winter storm moving east could result in some very bullish storage reports in a couple weeks. Getting storage under 2,000 bcf by the end of March would be quite bullish for gas.