Latest news with #EIAreport
Yahoo
12 hours ago
- Business
- Yahoo
Nat-Gas Prices Fall to 6-month Low on Bearish EIA Report and Cooler Temps
July Nymex natural gas (NGN25) on Thursday closed sharply lower by -0.131 (-3.70%). July nat-gas prices on Thursday extended this week's slide to a 6-month low. Nat-gas prices fell on Thursday's weekly EIA report, which showed a +96 bcf increase in the week ended June 20, which was a larger build than expectations of +88 bcf and the 5-year average increase for the week of +79 bcf. In addition, the Commodity Weather Group is forecasting a cool-down in the eastern half of the US for the later period of June 20-July 4 behind a cold front, which should curb nat-gas demand from electricity providers to run air conditioning. How High Can Middle East Turmoil Drive Crude Oil Prices? Nat-Gas Prices Fall to 6-month Low on Bearish EIA Report and Cooler Temps Dollar Weakness and Stock Strength Push Crude Oil Prices Higher Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. An easing of geopolitical risks is also bearish for nat-gas prices due to the Israel-Iran ceasefire. The ceasefire reduces the likelihood that Iran will close the Strait of Hormuz and disrupt LNG shipments through that Strait, which accounts for approximately 20% of global LNG trade. Lower-48 state dry gas production on Thursday was 105.6 bcf/day (+2.7% y/y), according to BNEF. Lower-48 state gas demand on Thursday was 77.1 bcf/day (-1.2% y/y), according to BNEF. Estimated LNG net flows to US LNG export terminals on Thursday were 14.1 bcf/day (+4.0% w/w), according to BNEF. A decline in US electricity output is negative for nat-gas demand from utility providers. The Edison Electric Institute reported Wednesday that total US (lower-48) electricity output in the week ended June 21 fell -3.1% y/y to 91,334 GWh (gigawatt hours), although US electricity output in the 52-week period ending June 21 rose +2.6% y/y to 4,243,923 GWh. Thursday's weekly EIA report was bearish for nat-gas prices since nat-gas inventories for the week ended June 20 rose +96 bcf, above the consensus of +88 bcf and the 5-year average for the week of +79 bcf. As of June 20, nat-gas inventories were down -6.6% y/y, but were +6.6% above their 5-year seasonal average, signaling adequate nat-gas supplies. As of June 23, gas storage in Europe was 57% full, compared to the 5-year seasonal average of 66% full for this time of year. Baker Hughes reported last Friday that the number of active US nat-gas drilling rigs in the week ending June 20 fell by -2 to 111 rigs, slightly below the 15-month high of 114 rigs from June 6. In the past nine months, gas rigs have risen from the 4-year low of 94 rigs posted in September 2024. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
a day ago
- Business
- Yahoo
Crude Prices Settle Higher as Weekly EIA Inventories Tumble
August WTI crude oil (CLQ25) Wednesday closed up +0.55 (+0.85%), and August RBOB gasoline (RBQ25) closed down -0.0049 (-0.24%). Crude oil and gasoline prices on Wednesday settled mixed. Crude oil found support on Wednesday's bullish weekly EIA report, which showed a larger-than-expected draw in crude oil inventories and a surge in US gasoline demand to a 3-1/2 year high. Nat-Gas Prices Pressured by the Outlook for Cooler US Temps Crude Prices Settle Higher as Weekly EIA Inventories Tumble Crude Prices Gain as Weekly EIA Inventories Fall and Gasoline Demand Soars Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! However, crude prices fell back from their best level and gasoline turned lower after Russia said it's open to another output hike at the next OPEC+ meeting on July 6. Also, there is speculation that the US may soon lift sanctions on Iranian crude exports, following President Trump's announcement that the US will hold a meeting with Iran next week. Concern about a global oil glut is negative for crude prices. On May 31, OPEC+ agreed to a 411,000 bpd crude production hike for July after raising output by the same amount for June. Saudi Arabia has signaled that additional similar-sized increases in crude output could follow, which is viewed as a strategy to reduce oil prices and punish overproducing OPEC+ members, such as Kazakhstan and Iraq. OPEC+ is boosting output to reverse the 2-year-long production cut, gradually restoring a total of 2.2 million bpd of production. OPEC+ had previously planned to restore production between January and late 2025, but now that production cut won't be fully restored until September 2026. OPEC May crude production rose +200,000 bpd to 27.54 million bpd. Gasoline prices have support from the American Automobile Association (AAA) projection that a record 61.6 million people will travel by car this Fourth of July holiday (June 28 to July 6), up +2.2% from last year and a sign of stronger gasoline demand. Oil prices continue to be undercut by tariff concerns, as President Trump recently stated that he intends to send letters to dozens of US trading partners within one to two weeks, setting unilateral tariffs ahead of the July 9 deadline that followed his 90-day pause. A decline in crude oil held worldwide on tankers is bullish for oil prices. Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days fell by -13% w/w to 79.66 million bbl in the week ended June 20. Wednesday's weekly EIA report is bullish for crude and products. The EIA reported crude inventories fell -5.84 million bbl, a larger draw than expectations of -1.1 million bbl. Also, gasoline supplies unexpectedly dropped -2.08 million bbl versus expectations of a +500,000 bbl build as US gasoline demand rose +4.2% w/w to a 3-1/2 year high of 9.688 million bpd. In addition, EIA distillate stockpiles unexpectedly fell -4.07 million bbl versus expectations of a +1.0 million bbl build. Finally, crude supplies at Cushing, the delivery point of WTI futures, fell -464,000 bbl. Wednesday's EIA report showed that (1) US crude oil inventories as of June 20 were -10.9% below the seasonal 5-year average, (2) gasoline inventories were -2.8% below the seasonal 5-year average, and (3) distillate inventories were -20.3% below the 5-year seasonal average. US crude oil production in the week ending June 20 was unchanged w/w at 13.435 million bpd, modestly below the record high of 13.631 million bpd from the week of December 6. Baker Hughes reported last Friday that active US oil rigs in the week ending June 20 fell by -1 to a 3-3/4 year low of 438 rigs. Over the past 2-1/2 years, the number of US oil rigs has fallen from the 5-1/4 year high of 627 rigs posted in December 2022. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
