European Energies Futures Prices
Futures Market News and Commentary
Jun Nymex natural gas (NGM20) on Tuesday closed up +0.062 (+3.58%).
Jun nat-gas prices on Tuesday rallied sharply on forecasts for hot weather along with reduced U.S. nat-gas production. The Commodity Weather Group on Tuesday said above-normal temperatures will move into the Midwest May 31-June 4 and then into the eastern U.S. the following week, which should boost demand for nat-gas and electricity to run air conditioning.
U.S. nat-gas output continues to decline, which is underpinning prices. U.S. lower-48 state nat-gas production on Tuesday fell by -7.5% y/y to 83.367 bcf/d, the nineteenth consecutive day that nat-gas production has fallen on a year-on-year basis.
Nat-gas prices are being undercut by continued demand concerns. Poten & Partners said last Wednesday that about 57 U.S. LNG cargoes have been canceled for June alone, and that more cargoes may be canceled for summer and autumn. Data from Bloomberg show that the U.S. exported only 61 LNG cargoes in A... Read more
Jul WTI crude oil (CLN20) on Tuesday closed up +1.10 (+3.31%) at $34.35, Jul Brent crude oil (CBN20) closed up +0.64 (+1.86%) at $36.17, and Jul RBOB gasoline (RBN20) closed up +0.0130 (+1.24%).
The energy complex on Tuesday moved higher with WTI crude at a 2-1/2 month high. Crude oil prices are seeing support from reduced global oil production, a weaker dollar, and improved global economic optimism.
Crude prices jumped Tuesday morning on comments from Russian Energy Minister Novak who said that the global oil market may be in balance in June-July as crude producers around the world have cut the global oil supply by 14-15 million bpd.
The energy complex was underpinned Tuesday by a rally in stocks that bolsters optimism in the economic outlook and energy demand. The S&P 500 climbed to a 2-1/2 month high Tuesday on the prospects of economies reopening from coronavirus lockdowns. Japan ended its state of emergency everywhere in the country. Deutsche Presse-Agentur... Read more