Sweet 16 - June 1
Posted: Wed Jun 01, 2016 5:30 pm
The "gassers" (AR, GPOR and RRC) all in the green today. SM also in the green, maybe because it produces a lot of gas. Hot summer weather now has a much bigger impact on demand for natural gas than it has in the past because ngas is now our #1 fuel for electrical power plants. Demand for more air conditioning has a big impact on demand for gas.
Oil prices are flopping around waiting on news from the OPEC meeting, which is shaping up to be a non-event. Inventory reports from API and EIA likely to have more impact on Thursday morning's trading.
They call them "cycles" for a reason and this one is coming to an end no matter what OPEC does.
El Nino has now officially rolled over to La Nina and some are now forecasting a SUPER La Nina. BTW the ocean's have 1,000X more impact on the global climate than CO2 in the air. La Nina winters are normal to cold in the eastern half of the U.S. NYMEX natural gas contract for December closed at over $3.00/mmbtu today. Gas back over $3.00 would be nice for all of the Sweet 16.
Oil prices are flopping around waiting on news from the OPEC meeting, which is shaping up to be a non-event. Inventory reports from API and EIA likely to have more impact on Thursday morning's trading.
They call them "cycles" for a reason and this one is coming to an end no matter what OPEC does.
El Nino has now officially rolled over to La Nina and some are now forecasting a SUPER La Nina. BTW the ocean's have 1,000X more impact on the global climate than CO2 in the air. La Nina winters are normal to cold in the eastern half of the U.S. NYMEX natural gas contract for December closed at over $3.00/mmbtu today. Gas back over $3.00 would be nice for all of the Sweet 16.