Energies Futures Prices

Mar WTI crude oil (CLH20) on Monday closed down -1.05 (-1.94%), Mar Brent crude oil (CBH20) closed down -1.37 (-2.30%), and Mar RBOB gasoline (RBH20) closed down -0.0152 (-1.10%).

The energy complex on Monday sold off for a fourth session with Mar WTI crude at a 3-1/2 month low, Mar Brent crude at a 3-month low, Mar RBOB gasoline at a 4-1/2 month low, and nearest-futures Feb gasoline at an 11-month low. Energy prices retreated on concern that the spread of the deadly Chinese coronavirus will undercut global economic growth and energy demand. The latest data show 2,744 confirmed cases of the virus and at least 80 deaths. Mainland China accounts for 98% of confirmed global infections but the virus has spread to more than 12 other countries. Also, China announced an extension of its Lunar New Year holiday until Feb 2 from Jan 30 help battle the spread of the virus, which may diminish energy demand further as Chinese businesses remain closed an additional three days.

Monda... Read more

Feb Nymex natural gas (NGG20) on Monday closed up by +0.009 (+0.48%).

Feb nat-gas prices finished with moderate gains on Monday as forecasts for colder U.S. temperatures next month sparked some short-covering. Maxar on Monday said it expects temperatures will be above average across most of the lower 48 U.S. states during Jan 27-Feb 5, but a cold pattern will emerge in the upper Midwest Feb 6-10. A warm start to the U.S. winter has reduced heating demand for nat-gas and elevated nat-gas inventories since December was the seventh warmest December in the post-1950 historical record.

Another bearish factor for nat-gas prices was the March/April 2020 futures spread that fell to a record low last Tuesday of -0.045, the most negative that spread has been since it started trading in 2016. The March/April futures spread on Monday closed at -0.037 and has finished in negative territory in fifteen of the last seventeen sessions, which is well below the 30 cent premium the March... Read more