European Energies Futures Prices
Futures Market News and Commentary
Feb Nymex natural gas (NGG20) on Friday closed down by -0.074 (-3.56%).
Feb nat-gas prices plunged to a 3-1/2 year low Friday on fund selling due to forecasts for warm U.S. temperatures. Nat-gas prices sank Friday after Commodity Weather Group LLC said updated weather models showed above-normal temperatures across much of the U.S. East later in Jan, a sharp shift from earlier projections for colder temperatures at the end of the month. 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 is the March/April futures spread that fell to a negative -0.027 on Friday, the most negative since the spread began trading in 2016. The March/April futures spread has finished in negative territory in ten of the last twelve sessions, which is well below the 30 cent premium the March contract traded above the A... Read more
Feb WTI crude oil (CLG20) on Friday closed up +0.02 (+0.03%), Mar Brent crude oil (CBH20) closed up +0.23 (+0.36%), and Feb RBOB gasoline (RBG20) closed down -0.0142 (-0.86%).
The energy complex settled mixed on Friday. Economic optimism and an easing of trade tensions boosted crude prices Friday, although gains were limited on dollar strength and weakness in the crack spread.
Friday's rally in U.S. stock indexes to new record highs shows confidence in the economic outlook and is positive for energy demand. Also, an easing of trade tensions is bullish for economic growth prospects and energy demand after the U.S. and China signed a phase-one trade deal on Wednesday and after the U.S. Senate on Thursday approved the USMCA agreement, which could spark new business investment now that the long-term rules are set for North American trade.
Better-than-expected Chinese economic data is positive for global growth and energy demand prospects after Friday's data showed C... Read more