European Energies Futures Prices
Futures Market News and Commentary
Aug WTI crude oil (CLQ20) on Wednesday closed up +0.28 (+0.69%) at $40.90, Sep Brent crude oil (CBU20) closed up +0.21 (+0.48%) at $43.29, and Aug RBOB gasoline (RBQ20) closed up +0.0159 (+1.25%).
The energy complex on Wednesday closed higher with RBOB gasoline at a 2-week high. Crude prices on Wednesday initially moved lower after an unexpected build in weekly EIA crude inventories and a surge in distillate supplies. However, a slump in the dollar index to a 2-week low sparked short-covering in crude and prices closed higher. Gasoline also gained on an unexpected draw in EIA gasoline stockpiles.
Comments on Wednesday from ECB Vice President Guindos were positive for economic growth and energy demand when he said, "the outlook is a little bit brighter than it was only two months ago in terms of economic performance."
A negative for crude prices is the outlook for an increase in Canadian crude output. Cenovus Energy, Husky Energy, Baytex Energy, and several other... Read more
Aug Nymex natural gas (NGQ20) on Wednesday closed down -0.052 (-2.77%).
Nat-gas prices on Wednesday moved as demand concerns outweighed the outlook for hot U.S. temperatures. Nat-gas prices retreated on concern U.S. nat-gas demand will slide after the heavy fuel-consuming states of California, Florida and Texas delayed reopening their economies due to a resurgence of coronavirus infections.
Nat-gas prices on Tuesday had earlier jumped to a 2-month nearest-futures high on fund buying after Maxar said U.S. temperatures would be well above normal across most of the lower 48 states through July 21, with the strongest heat in the Midwest and Northeast. The hot temperatures should boost nat-gas demand from power companies to drive increased air-conditioning demand. BNEF estimates that nat-gas demand from power generators was 41.2 bcf/d on Monday, an all-time high for that day in data going back to 2014.
Another supportive factor for nat-gas prices was Tuesday's monthl... Read more