Latest news with #energyprices
Yahoo
15 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
Bloomberg
a day ago
- Business
- Bloomberg
Europe Gas Set for Biggest Weekly Drop in Two Years as Risks Ebb
European natural gas prices are headed for their biggest weekly retreat in almost two years after supply fears linked to tensions in the Middle East eased. Benchmark futures fell as much as 3.1% on Friday, marking the sixth consecutive daily decline. That's set them on course to wipe out around a fifth of their value this week, the biggest weekly loss since July 2023.
Reuters
3 days ago
- Business
- Reuters
Polish president says government trying to force him to sign wind farm laws
WARSAW, June 25 (Reuters) - Polish President Andrzej Duda, whose term ends in August, said on Wednesday the government was trying to force him to sign a bill to make it easier to build wind farms by including a last-minute amendment in legislation to freeze power prices. Boosting renewable power production has been an election pledge, opens new tab of the current liberal government, after the previous conservative administration, allied with Duda, blocked the development of onshore wind for most of its eight years in power. "Unfortunately, the prime minister and his colleagues, by throwing in such an amendment that is supposed to protect Poles against increases in energy prices, are simply trying to force me to sign this bill, putting me up against the wall," Duda, who has described himself as not being an enthusiast of wind farms, told a press briefing on Wednesday. "But he must remember I'm finishing my job soon." The Polish parliament is proceeding with draft legislation easing rules on building onshore wind farms, a key step to boosting renewable energy output and lowering electricity prices, according to the government. The law needs to be approved by the Senate, and signed by the president. President-elect Karol Nawrocki has also been sceptical of easing onshore wind farm regulations.
Telegraph
3 days ago
- Business
- Telegraph
Major chemical factory shuts days after Starmer unveils Industrial Strategy
The owner of one of Britain's biggest chemical plants has confirmed it will close, dealing a blow to Sir Keir Starmer 's new Industrial Strategy just days after it was launched. Saudi Aramco-owned Sabic said on Wednesday that it had decided to shut the Olefins 6 'cracker' facility in Teesside permanently following a review of 'competitiveness'. It comes after the company had paused a major conversion of the plant to run on gas feedstock, sparking speculation that bosses were on the verge of announcing its closure. The move puts about 300 local jobs at risk and underscores the strain faced by Britain's chemicals industry as a result of crippling energy prices and a tough global market.
Reuters
4 days ago
- Business
- Reuters
EU agrees to loosen gas storage rules
BRUSSELS, June 24 (Reuters) - The European Union's member states have reached an agreement with the EU Parliament to loosen the EU's rules on filling gas storage, following concerns that earlier rules on this risked inflating energy prices. The agreement was announced by the European Commission on Tuesday. The EU's gas storage rules were introduced in 2022 to ensure EU countries had a buffer of stored fuel during winter, after Russia cut gas deliveries following its full-scale invasion of Ukraine, sending Europe's gas prices soaring. But governments backed plans in April to soften the rules before winter, over concerns the requirement to fill storage to 90% capacity by November 1 inflates prices, by telling the market European buyers needed to buy large amounts of gas ahead of this deadline. The deal allows the EU's member states to achieve this 90% filling target at any point in time between October 1 and December 1, taking into account the start of the member states withdrawal period. Once the 90% target is met, it should not be required to maintain that level until 1 December. The EU's member states should also have the possibility to deviate by up to ten percentage points from the filling target in case of difficult market conditions, such as indications of speculation hindering cost-effective storage filling. "The European Union needs stable energy supplies at affordable prices to prosper. Gas storage is a key contributor to our security of supply and market stability. It also protects us from Russia's energy weaponisation and market manipulation," said EU energy commissioner Dan Jorgensen. "In the current geopolitical context, this agreement shows that the EU remains determined to shield its citizens and businesses from any risk of supply disruption and price spikes," he added.
