European Energies Futures Prices
Futures Market News and Commentary
May Nymex natural gas (NGK20) on Thursday closed down -0.50 (-2.80%).
Nat-gas prices on Thursday closed lower on a bigger-than-forecast storage inventory increase. The EIA on Thursday reported that U.S. nat-gas inventories rose +38 bcf last week, more than expectations of +29 bcf and well above the 5-year average of +6 bcf.
Nat-gas prices remained under pressure from weak demand as the global economy remains in partial lockdown from the coronavirus pandemic, which has decimated energy demand.
Also, Chinese nat-gas demand is weak after a report from researcher ICIS on Wednesday said China's 2020 LNG imports may fall -5.2% y/y to 58.1 MT due to demand destruction cause by the coronavirus outbreak.
May nat-gas on Tuesday rallied to a 3-week high on forecasts for colder U.S. temperatures. Maxar on Tuesday said temperatures may be below normal across most lower 48 U.S. states during April 12-16, with even colder temperatures in the central U.S between April 14... Read more
May WTI crude oil (CLK20) on Thursday closed down -2.33 (-9.29%), Jun Brent crude oil (CBM20) closed down -1.36 (-3.98%), and May RBOB gasoline (RBK20) closed down -0.0007 (-0.10%).
The energy complex on Thursday gave up an early advance and settled sharply lower. Brent crude and RBOB gasoline both fell back from 3-week highs Thursday and sold off on expectations that the agreement reached by OPEC+ to cut crude production by 10 million bpd will be insufficient to make up for the plunge in global energy demand caused by the coronavirus pandemic.
Crude prices initially rallied Thursday after OPEC+ agreed to cut its crude output by 10 million bpd for two months and said it plans to seek an additional cut of 5 million bpd from G-20 countries. There is a G-20 meeting for energy ministers scheduled for Friday and chaired by Saudi Arabia.
Comments by Russian Energy Minister Novak Thursday were supportive for crude prices as he urged other crude-producing countries to j... Read more