European Energies Futures Prices
Futures Market News and Commentary
Aug WTI crude oil (CLQ20) on Monday closed down -0.45 (-1.11%) at $40.10, Sep Brent crude oil (CBU20) closed down -0.52 (-1.20%) at $42.72, and Aug RBOB gasoline (RBQ20) closed down -0.0097 (-0.76%).
The energy complex on Monday closed lower on signs that OPEC+ is preparing to taper its crude production cutbacks. Also, the raging coronavirus pandemic may force states to reinstitute lockdown measures that will slow economic growth and curb energy demand. Losses in crude were contained by Monday's weakness in the dollar.
The OPEC+ Joint Ministerial Monitoring Committee (JMMC) will meet this Wednesday, and several delegates said the committee is leaning toward tapering its crude production cuts to 7.7 million barrels/day for August from 9.6 million bpd in July. Also, several members from top Russian oil producers said they are preparing to ramp up crude production next month in the absence of other guidance from the Russian Energy Ministry. Crude prices were also under pr... Read more
Aug Nymex natural gas (NGQ20) on Monday closed down -0.066 (-3.66%).
Nat-gas prices on Monday settled sharply lower on demand concerns. Gas demand from industrial consumers on Monday stood at 17.8 bcf/d, down -15% y/y, according to Bloomberg data. Also, concern has intensified that the recent surge in new U.S. coronavirus cases may force states to reimpose lockdowns that will curtail economic growth and energy demand. Florida, on Sunday, reported a 1-day record of 15,300 new virus infections. California on Monday afternoon announced the state-wide closure of indoor dining and bars, and the closure in 80% of the state of churches, gyms, and hair salons. Confirmed cases of the virus have risen above 13.062 million globally, with deaths exceeding 572,000.
A positive factor for nat-gas is excessive heat in the U.S. that should boost nat-gas demand from power companies to drive increased air-conditioning demand. The Commodity Weather Group on Monday said that temperatures w... Read more