RECENT Energy and Power RESEARCH
Natural gas inventories dropped more than expected last week, helping to boost natural gas prices to the highest point yet this year.
Last week’s colder than normal winter helped to give natural gas prices another boost.
On Wednesday, the DOE reported a larger than expected increase in US crude oil inventories for the week ended March 1, sending oil prices downward on the day.
Initial jobless claims were surprisingly lower for the week ended March 2, giving a boost to oil prices.
The yield on BofAML’s High Yield Master II Index decreased last week, which is a positive signal for high yield companies with debt financing needs in the near-term, many of which are energy companies.
Last week’s colder than normal weather was a positive short-term driver for natural gas prices as natural gas is a major fuel for home heating.
Oil prices fell again last week, continuing a month-long slide and resulting in reduced revenue for oil producers.
Last week the spread between WTI crude and Brent crude narrowed, however, the difference in price between the two crudes still remains wide leaving domestic producers with significantly less revenue per barrel than their international counterparts.
Spreads between Midland crude and WTI crude narrowed again last week, which is a positive short-term driver for producers with major assets in the Permian Basin.
For most of 2012, natural gas market share for power generation has been significantly above 2011 given the coal-to-gas switching trend that resulted from low nat gas prices. Last December,…
Natural gas prices rose last week resulting in a positive short-term catalyst for natural gas names such as Chesapeake, Southwestern, Comstock, and Quicksilver.
The Baker Hughes US Oil Rig Count rose by 4 last week, in what could be a signal that oil producers are feeling confident about the current price and operating environment and are putting more capital to work to produce oil.
Natural gas rigs drilling in the US fell last week from 428 to 420, and a continuation of this trend could signal further bearish sentiment from producers.
Natural gas liquid production continues to grow, pressuring the prices of ethane and propane.
An increase in OPEC oil production last month reversed a five month long trend of decreasing oil production from the collective.
Every week, the Energy Information Administration (EIA) releases data on how much natural gas is stored in various facilities across the US. These figures, also called “natural gas inventories,” can…
Oil inventories rose less than expected last week, resulting in a positive signal for oil prices.
Midland-WTI spreads have tightened since the beginning of the year, which is a positive for oil and gas producers with major assets in the Permian/West Texas region.
Investors owning non-investment grade companies with funding needs should watch movements in high yield bonds as increasing yields could mean higher funding costs.
Sustained low natural gas prices have spurred power companies to use more natural gas in favor of coal when possible.