Energies Futures Prices

Sep WTI crude oil (CLU20) on Tuesday closed up +0.69 (+1.68%), Oct Brent crude oil (CBV20) closed up +0.28 (+0.62%), and Sep RBOB gasoline (RBU20) closed up +0.0012 (+0.10%).

Energy prices on Tuesday moved higher with WTI crude and Brent crude posting 1-week highs. A weaker dollar and better-than-expected U.S. economic data on Tuesday were supportive for crude prices. Crude spiked to its high Tuesday on signs of instability in the Middle East after a massive explosion rocked the Port of Beirut in Lebanon without a known cause as yet.

U.S. economic data on Tuesday was supportive for energy demand and crude prices after June factory orders rose +6.2% m/m, stronger than expectations of +5.0% m/m.

Improvement in European airline travel bodes well for increased jet fuel demand and is bullish for crude prices after EasyJet said Tuesday it will expand its summer travel schedule due to a stronger-than-expected pickup in European air travel.

Another supportive fac... Read more

Sep Nymex natural gas (NGU20) on Tuesday closed up +0.092 (+4.38%).

Sep nat-gas prices on Tuesday extended Monday's sharp rally and posted a 6-1/2 month nearest-futures high on forecasts for warmer temperatures, which would boost nat-gas demand from power plants to fuel increased air conditioning usage. Maxar, on Tuesday, said that temperatures would be above-normal across most lower 48 U.S. states during Aug 9-18.

Fund buying in nat-gas futures started Monday after Bank of America said prices are now at a "turning point," with summer heat in the U.S. slowing nat-gas storage gains and "the balance tightening rapidly heading into winter as demand recovers to full capacity and U.S. nat-gas production remains flat.

Temperatures during July were the hottest in 20 years, according to BNEF. Also, the U.S. Climate Prediction Center recently forecast warmer-than-normal temperatures across the U.S. from August to October.

A supportive factor for nat-gas prices is... Read more