The Phil Flynn Energy Report - The Natural
By Phil Flynn | January 9, 2013 1:18 AM EST
The natural gas market was edging higher on colder weather forecasts but was thwarted by a historic announcement. The Energy Information Admistration gave pause to natural gas bulls when it reported that US gross natural gas production hit a record high 73.54 billion cubic feet a day in October. That was up 0.4 percent from the month of September that was also upwardly revised and more than the market expected. Now when you couple that with the fact that more pipelines are coming online to get that increased gas production into Henry Hub the longer term expectations for end of season storage has to start risng. So in other words it will be hard to keep gas strong as it is clear that production is on an upward trajectory despite the weakness in price.
The colder temperatures did support oil that was being weighed down by an anticipated rebound in supply. Heating oil led the way and RBOB received support by reports of a Bayway Flaring incident. The market was also moved by stock market gyrations which mean that earnings could impact the price of oil. Technically crude still looks to move higher. Of course the "gas-oil" and natural gas market seems to be the strongest as cold weather in Europe and China are supporting prices. Reuters reports that British gas for immediate delivery rose to a near 2-week high on Monday morning as forecasts of cold weather and rising industrial consumption after the extended holiday period boosted demand outlooks.
Daily average temperatures were expected to drop to below 2 degrees Celsius by early next week, down from around 10 degrees Celsius forecast for Tuesday. Cooler weather was expected to boost gas-fired heating demand.
In Asia distillate and Jet fuel margins at one-week high as kerosene demand from Japan continued to be strong on a colder than anticipated winter. Still the gasoil market, on the other hand, has been adequately supplied with more spot barrels seen coming out from India and Taiwan.
Make sure you open your Price Futures Group account today! Just call me at 888-264-5665 or email me at firstname.lastname@example.org
Most Popular Slideshows
Join the Conversation
- Chilling: New ISIS Video Addresses Australia; Aussie Teen Delivers Message
- The Pirate Bay Blockade: Cost Of Blocking Websites Like TPB Is Ridiculously High
- Xiaomi Mi4 And MiPad Prices Likely Slashed, Thanks To Rivals Oppo, OnePlus And Meizu
- Virginia Woman Who Posted Naked Image Of Ex-BF’s New Partner 1st Person Charged Under Revenge Porn Law
- No Mercy: ISIS, Father Stones to Death Daughter for Alleged Adultery
- Meizu MX4 Pro To Arrive In November In Black And White Colours, Features Higher Than QHD Display, Exynos 5430 SoC And 3 GB RAM
- iOS 8 Jailbreak Release Date is Doomed as Team Evad3rs Opts Out, Pangu Hits Snag – Report