Oil & Gas Prices

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Oil & Gas Prices

Post by dan_s »

From CME Analyst:
Crude oil prices saw some lift today from renewed supply side concerns to Libya and also because of news that OPEC output in November declined and in the process reached the lowest level in over 2 years. Clearly some of the potentially bullish OPEC production data was countervailed by rising US output and it is also possible that month end short covering added to the bullish tilt in energy prices today. Energy prices might also have garnered some lift from news of tightening US distillate supply levels as the year over year deficit and the deficit compared to the 5 year average supply for this time of the year fostered the first tangible supply threat in the energy complex since early July. Another issue playing into the rekindling of supply side concerns were reports of death and violence inside Libya as some traders fear that turmoil might ultimately result in reduced Libyan oil exports.

Natural gas prices were boosted by a US pipeline mishap and also because of a colder than normal temperature pattern. Some traders suggest that natural gas prices were seeing long term short covering buying as the long held net short contingent might be having second thoughts about remaining short natural gas.
Dan Steffens
Energy Prospectus Group
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