CNBC's Jackie DeAngelis discusses the day's activity in the commodities markets. Nervousness over economic data helped drive oil prices lower. Geopolitics has not been a factor. Nat gas was up slightly on the day. And gold was slightly lower, as well.» Read More
Natural gas prices began the week with a whimper instead of a bang, closing yesterday 1.8% lower at 5.625. That marks the third consecutive day the bulls have failed to break out higher, writes Stephen Schork.
There is one caveat for the bulls to consider, there is a material amount of spare capacity in the form of deferred production, writes Stephen Schork.
Crude oil supplies in the Midwest (PADD II) and the GoM continued moving in opposite directions, writes Stephen Schork.
Over the last four DOE reports we have seen a significant re-steepening of the NYMEX curve, writes Stephen Schork.
In 2006 we saw poor refinery performance as strong concurrent hurricane seasons delayed maintenance in the spring of 2005 and 2006. At the start of the year refinery throughput was 3% lower than the preceding year and traders feared a shortage in capacity which led to product prices decoupling from the complex and rising sharply, writes Stephen Schork.
Last week’s surge in heating demand is apparently comparable to the long-lasting devastation wrought by Hurricane’s Katrina and Rita … despite the fact that underground stores of gas are currently 586 Bcf (+18%) above the five-year average
This heating season is getting off to a crazy start. October was one of the coldest on record, only to be followed by an extremely warm November, writes Stephen Schork.
Energy prices were weak on Wednesday, the liquids sank on a bearishly construed inventory report, writes Stephen Schork.
As we noted last Thursday, we are growing uncomfortable with the precipitous drop in supplies in two key distillate market areas. For starters, the surplus of heating oil supplies (in the East – the largest residential oil furnace market in the U.S. – jumped by 631 bps to 45.1% or 13.4 MMbbls, writes Stephen Schork.
Energy prices were mixed on Monday - Natural gas futures in New York exploded thanks to a favorable (short-term) forecast from the weatherman, writes Stephen Schork.
At this moment in time, traders on the NYMEX are showing no concern for the industry’s ability to supply gas to the market this heating season, writes Stephen Schork.
Before the bulls pop the champagne corks they should consider what has transpired in the market since September, writes Stephen Schork.
). Imports are now on par to what we saw last April. In fact, outside of last spring, the only other time we have seen imports this low occurred back in the fourth quarter 1990 to first quarter 1991, i.e. in the buildup to oust Saddam from Kuwait, writes Stephen Schork.
This morning the DOE reported its largest build in crude oils stocks since September, a whopping 2.1 Mbbls increase which beat out all but two of the fifteen economist estimates in Bloomberg’s survey. Traders’ knee jerk reaction was bearish with a capital B, wiping out all of this week’s gains in early morning trading to push prices below $76.50 from yesterday’s 79.04 high, writes Stephen Schork.
Even if the dollar rallies we would expect significant resistance around the $70 mark, fundamentally investors have put too much money on the table to give up the $70 barrier without a fight, writes Stephen Schork.
History suggests that we normally see a double-digit delivery for today’s forthcoming EIA report (the 47th of the year), but this season is anything but normal, writes Stephen Schork.
The latest forecast is calling for some extreme cold in the 6-10 day outlook. This is the forecast the gas bulls have been waiting for, writes Stephen Schork.
The latest outlook provides some hope for bulls. NOAA is forecasting below normal temps towards the end of this month and into the beginning of December in the Mid-Atlantic market. Normal temps are expected in the New England and Midwest markets. It’s not much, but that is all the bulls really have to go on at this time, writes Stephen Schork.
Energy prices were mixed on Wednesday-the liquids fell off intra-day highs after the bulls failed to excite post DOE bullish momentum, writes Stephen Schork.
Yesterday’s DOE report was bearish, but that is nothing new. The trend in these reports has been bearish for quite some time now. We would like to think that yesterday’s weakness on the NYMEX could be attributable to the DOE report. But, that would be quite Pollyannaish of us now wouldn’t it, writes Stephen Schork.