Natural gas inventories continued to drop at levels far exceeding average according to an EIA report. Henry Hub prices finished $0.05/MMBtu higher on the day.
Last week’s jobless claims figures were higher than expected, which was a negative signal for the US economy and therefore US oil demand.
Natural gas powered vehicle usage should increase over the long-term, providing another demand outlet for natural gas and potentially price support to the commodity.
US crude inventories rose to the highest level since 1990 and increased more than analysts’ expectations; crude oil prices tumbled nearly 3% on the day.
The yield on the BAML High Yield Index fell throughout the month of March, signaling that the cost of debt for high yield companies continues to decrease in a positive sign for companies needing funds.
Last week, US oil rig counts increased by over 2% in what could be a signal that domestic oil producers are feeling more confident about the current drilling and price environment.
Continued cold weather into late March provided support to natural gas prices, which have had a strong rally since mid-February.
Midland-WTI differentials blew out to $14 per barrel earlier this year, but have since closed to nearly $0 which benefits Permian based producers.
Natural gas liquids prices increased last week, which is positive for companies with a large proportion of production coming from rich gas resources.
OPEC oil production dropped to the lowest point since November 2011 last month.
Natural gas rigs dropped off significantly last week, which was unexpected given the recent rally in natural gas prices.
Recently the differentials between Bakken crude and WTI crude have closed and stabilized as transportation capacity out of the region has increased to meet production growth.
Brent crude finished up on the week, the first increase after two consecutive weeks of declines.
WTI crude finished up on the week to recover to near 2013 highs.
Natural gas continued a strong rally to finish the week above $4.00/MMBtu.
The gap between Brent crude (which is more representative of crude prices received internationally) and WTI crude (which is more representative of prices received domestically) continued to close last week for the seventh week in a row.
A brief introduction to oil and gas collars used by upstream energy companies.
Ethane traditionally had tracked crude oil prices, but has recently sunk to price lows and has started to mirror movements in natural gas. Part III of III.
Ethane traditionally had tracked crude oil prices, but has recently sunk to price lows and has started to mirror movements in natural gas. Part II of III.
Ethane traditionally had tracked crude oil prices, but has recently sunk to price lows and has started to mirror movements in natural gas. Part I of III.