The energy sector is off to a mixed-to-higher start, supported by strength in natural gas futures and the broader markets, despite weakness in the crude complex. U.S stocks are set to open mostly higher a day after a brutal sell-off on Wall St, as the market awaits to digest more inflation data.
WTI and Brent crude are moving higher during a choppy morning of tradingas investors remain concerned the Federal Reserve will continue to aggressively raise interest rates which will put a dent in oil demand. The IEA in its September MOMR today expects global oil demand growth to come to a halt in 4Q22 and with supply outpacing demand into 2Q23, there should be a "much needed" build in stocks. Growth in global oil demand continues to decelerate, weighed down by renewed Chinese lockdowns and an ongoing slowdown in the OECD. Additionally, the Biden administration is looking at refilling the SPR at $80/barrel oil as Secretary of State Blinken stated a new nuclear agreement with Iran in the near term was unlikely.
Natural gas futures are up as record levels of output continue to lend support and on forecast for higher demand in the next two weeks than previously expected.
Mortgage rates hit 6% for first time since 2008 with applications at 23-year low
The numbers: A surge in mortgage rates to 6% is giving home shoppers chills, pushing...
The numbers: A surge in mortgage rates to 6% is giving home shoppers chills, pushing them to wait to refinance or buy a home.
With rates doubling from where they were a year ago, demand from buyers continues to weaken, as reflected in the Market Composite Index, a measure of mortgage application volume.
The index is now at its lowest level since December 1999, the Mortgage Bankers Association (MBA) said on Wednesday.
The market index fell 1.2% to 255 in the week ending September 9. A year ago, the index stood at 707.9.
Citizen Energy reports completion of Canadian County wells
Two of the latest Canadian County producers were wells on a single pad that had combined...
Two of the latest Canadian County producers were wells on a single pad that had combined oil production of more than 600 barrels of oil a day.
Citizen Energy III LLC, of Tulsa drilled the Kolar 1h-35 and the Kolar 2h-35, drilled on a pad in Section 2-10N 6W, a site about 3 miles west of Mustang. The Kolar 1-h-35 produced 326 barrels of oil a day and 1,358 Mcf of natural gas from a depth of 14,584 feet. The completion report showed a late March spud date.
The Kolar 2h-35 produced 314 barrels of oil a day and 1,674 Mcf of natural gas. It had a drilled depth of 14,758 feet and the completion report showed a spud date in March 2022.
Total combined production was 640 barrels of oil a day.
Benchmark U.S. crude oil for October delivery fell 47 cents to $87.31 a barrel Tuesday. Brent crudefor November delivery fell 83 cents to $93.17 a barrel. Wholesale gasolinefor October delivery rose 4 cents to $2.48 a gallon. October heating oilfell 6 cents to $3.54 a gallon. October natural gas rose 3 cents to $8.28 per 1,000 cubic feet.
