During the week ending August 21, Canadian Solar (CSIQ) lost 30% owing to weak 2Q15 earnings and 3Q15 guidance.
Out of the 40 utilities we track, only four gained during the week ended August 14, while the remaining 36 ended in red.
After being under pressure for weeks, Peabody Energy (BTU) gained 57.5% and ended at $1.78 last week.
Powder River Basin spot coal prices averaged $10.20 per ton for the week ended August 21. That’s $0.50 lower than the price for the week ended August 14.
According to the EIA estimates, US coal shipments increased marginally to 18.3 million tons during the week ended August 14 in comparison to 18.2 million tons for the week ended August 7.
All three divisions on the East Coast saw electricity generation fall during the week as warm temperatures moderated.
Electricity generation in the United States dropped to 88.0 million megawatt hours for the week ended August 14 compared to 88.7 million megawatt hours the week before.
Natural gas prices closed lower on Monday, August 17, at $2.73 per million British thermal units (or MMBtu) compared to the previous week’s ending price of $2.80.
Crude oil prices are a mixed driver for the coal industry (KOL) in the United States. On the one hand, a fall in crude oil prices results in a fall in fuel costs.
The fall in natural gas prices over the last few months has hurt coal producers (KOL), especially those with operations in the East and the Midwest.
WTI (West Texas Intermediate) crude oil’s discount to Brent crude oil narrowed in the week ended August 21 over the previous week.
USO shares trade on the NYSE like company stock. The fund fell 5.43% in the week ended August 21.
WTI (West Texas Intermediate) crude oil prices closed 4.82% lower on a weekly basis at $40.50 per barrel in the week ended August 21.
According to oil service company Baker Hughes (BHI), the horizontal rig count was up by one rig in the week ended August 21, 2015.
Crude oil prices are fluctuating in a narrow downward trending price channel. The oversupplied market and record inventories could drag crude oil prices lower.
Bloomberg data estimate that the crude oil production from 58 shale producers rose by 19% in 2015. This is despite spending cuts of $21.7 billion.
Traders watch the API data closely because it’s a precursor to the EIA’s weekly crude oil inventory report. The EIA stockpile will release on August 26, 2015.
NYMEX-traded WTI crude oil futures contracts for September delivery rose by 2.80% on August 25. Crude oil prices recovered despite oversupply concerns.
September natural gas futures contracts trading in NYMEX were trading close to the nearest support of $2.60 per MMBtu on August 24, 2015.
Last week, Baker Hughes reported that the weekly natural gas rig count fell by one to 210 for the week ending August 21, 2015.