European Energies Futures Prices
Futures Market News and Commentary
Dec Nymex natural gas (NGZ20) this morning is up +0.009 (+0.27%).
Dec nat-gas prices this morning are modestly higher as strong foreign demand for U.S. nat-gas offsets the forecasts for warmer U.S. weather. Gas flows to U.S LNG export terminals on Friday rose to a record 9.8 bcf (data from 2014), up +2.5% from Thursday. Nat-gas prices on Monday surged to a 1-3/4 nearest-futures high (Nov 20-contract) on strength in U.S. nat-gas demand.
Gains in nat-gas prices were limited as Maxar forecasts warmer-than-normal temperatures across most of the U.S. from Nov 4-8, which should reduce heating demand for nat-gas.
Another negative factor was reduced U.S. nat-gas usage as total nat-gas consumption in the lower 48 U.S. states on Friday was down -2.4% y/y at 78.1 bcf.
Last Wednesday, NOAA said that there is a La Nina weather pattern that over the longer-term could trigger a colder-than-normal winter in the northern tier of the U.S., thus boosting heating demand for... Read more
Dec WTI crude oil (CLZ20) this morning is down Thursday closed down -0.56 (-1.55%), Dec Brent crude oil (CBZ20) is down -0.22 (-0.58%), and Dec RBOB gasoline (RBZ20) is down -0.0111 (-1.08%).
The energy complex this morning is moving lower but remains above Thursday's lows when WTI crude posted a 4-1/2 month low and Brent crude posted a 5-month low. The energy complex is under pressure on concern the resurgence of the Covid pandemic in the U.S. and Europe will keep people hunkered down, which will curb demand for auto and aviation fuel.
Surging Covid infections in Europe have forced Germany and France, Europe's two largest economies, to impose fresh lockdown measures that are negative for economic growth and energy demand. German Chancellor Merkel on Wednesday announced that bars and restaurants in Germany would close for a month, and French President Macron ordered a new national lockdown where bars, restaurants, and non-essential retailers will be forced to close for... Read more