European Energies Futures Prices
Futures Market News and Commentary
Jul WTI crude oil (CLN20) on Friday closed down -0.67 (-1.98%) at $33.25, Jul Brent crude oil (CBN20) closed down -0.93 (-2.56%) at $35.13, and Jul RBOB gasoline (RBN20) closed down -0.0100 (-0.94%).
The energy complex on Friday settled sharply lower on a stronger dollar and on doubts about China's economy and its energy demand. Also, long liquidation pressures weighed on crude oil ahead of the long Memorial Day holiday weekend.
Escalation of U.S./China tensions boosted the dollar on Friday and undercut stock and commodity prices. Tensions rose after China announced plans to impose a national security law on Hong Kong. President Trump said the U.S. would "respond strongly" to a planned move by China to crack down on protests and democratic movements in Hong Kong.
Concern that weak economic growth in China, the world's second-largest crude consumer, will curb China's energy demand also undercut crude prices. Growth concerns increased after China on Friday abandon... Read more
Jun Nymex natural gas (NGM20) on Friday closed up +0.021 (+1.23%).
Jun nat-gas prices on Friday recovered from early losses and settled moderately higher on reduced U.S. nat-gas output. U.S. lower-48 state nat-gas production on Friday fell by -7.2% y/y to 82.651 bcf/d, the eighteenth consecutive day that nat-gas production has fallen on a year-on-year basis.
Nat-gas prices maintained their gains Friday afternoon when weekly data from Baker Hughes showed that active U.S. oil rigs fell -21 in the week of May 22 to a 10-3/4 year low of 237, which means less nat-gas production as a by-product.
Demand concerns continue to thwart rally attempts in nat-gas. Poten & Partners said 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 April, the lowest total since November. Also, nat-gas supply to liquefaction plants fel... Read more