European Energies Futures Prices
Futures Market News and Commentary
Jul Nymex natural gas (NGN20) this morning is down -0.029 (-1.49%).
Jul nat-gas prices are weaker this morning on forecasts for more seasonable temperatures in the U.S., which should curb demand for nat-gas and electricity to run air conditioning. The Commodity Weather Group said today that temperatures will be mostly seasonable across the central U.S. over the next 5 days with less intense warmth in the Northeast during this period. Also, the central U.S. will warm up again June 1-5, while the Northeast drops to below-average temperatures.
U.S. nat-gas output continues to decline, which is supportive for nat-gas prices. U.S. lower-48 state nat-gas production today fell by -7.6% y/y to 83.098 bcf/d, the twentieth consecutive day that nat-gas production has fallen on a year-on-year basis.
Nat-gas prices also have support on increased Chinese demand after China customs data on Tuesday showed China imported 218,323 MT of LNG from the U.S. in April, the first LNG im... Read more
Jul WTI crude oil (CLN20) this morning is down -1.17 (-3.41%) at $33.18, Jul Brent crude oil (CBN20) is down -1.11 (-3.18%) at $35.06, and Jul RBOB gasoline (RBN20) is down -0.0423 (-3.97%).
The energy complex this morning is moving lower on signs that Russia wants to dial back on crude production cuts. In April, OPEC+ agreed to cut output until July but Russian oil companies on Tuesday discussed the future of the deal with Russian Energy Minister Novak and said they could not reach a consensus about extending the crude production cuts for another two months. According to the newspaper Kommersant, Saudi Arabia is pressing for an extension of the deal until September. OPEC+ will meet by virtual conference on June 9-10 to discuss extending their crude production cuts.
Escalation of U.S./China tensions is weighing on economic optimism and energy demand. The Trump administration is considering a range of sanctions to punish China for its crackdown on Hong Kong, while the H... Read more