U.S. oil futures edge higher a day after the OPEC+ decision to cut output
U.S. benchmark oil prices ended little changed ...
U.S. benchmark oil prices ended little changed on Tuesday, as traders in the U.S., following a holiday on Monday, got a chance to react to a decision by OPEC+ to cut production by 100,000 barrels per day in October. The decision essentially reversed September's 100,000 barrel-per-day increase. In terms of signaling, "the move is important as it indicates that OPEC+ is watching demand very closely and is trying to manage supply to keep a floor on oil prices," said Noah Barrett, research analyst for energy & utilities at Janus Henderson Investors. Several countries have called on OPEC+ to increase supply but OPEC+ is "clearly sending a message that they are not bowing to external demands." October WTI crude CLV22, -0.03% added a penny to settle at $86.88 a barrel on the New York Mercantile Exchange.
Europe’s Stocks Could Fall Another 15% as Energy Crisis Intensifies, Morgan Stanley Says
European stocks might look like a bargain today, but they likely have another 15% to fall as the region’s...
European stocks might look like a bargain today, but they likely have another 15% to fall as the region’s energy crisis intensifies, a top strategist is warning. Stocks are still trading as if earnings will grow next year, even as a recession grows ever more likely, said Graham Secker, Morgan Stanley’s chief European equity strategist.
War and an energy crisis have spooked European markets and sent stocks there down more than 25% this year. With the way things are going now, Goldman Sachs analysts expect electricity bills in Europe to triple by early next year over 2021 levels, boosting energy bills by a collective $2 trillion, or 15% of GDP.
California power prices soar to highest since 2020 in heat wave
(Reuters) - U.S. power prices in California and other western states for Tuesday soared to their highest...
(Reuters) - U.S. power prices in California and other western states for Tuesday soared to their highest since California's electric grid operator imposed rotating outages in August 2020 as a brutal heat wave lingers over the drought-stricken region.
The California Independent System Operator (ISO) forecasted demand would peak at 51,044 megawatts (MW) on Tuesday, topping the current record of 50,270 MW in 2006, before sliding to 50,002 MW on Wednesday.
Power prices at the Palo Verde hub in Arizona and SP-15 in Southern California rose to $850 and $505 per megawatt hour, respectively. That was their highest levels since hitting record highs of $1,311 in Palo Verde and $698 in SP-15 in August 2020 when the ISO last imposed a rotating outage.
Natural Gas Price Primed to Break Record, Even if Winter is Mild
Low natural gas inventories will persist into the fall and, even combined...
Low natural gas inventories will persist into the fall and, even combined with the forecast of a relatively mild winter, could propel the Henry Hub price well above its record high of $15.39/MMBtu set on Dec. 13, 2005, analysts say.
“When New England has to buy some $50-$100/MMBtu cargoes this winter and Henry Hub sets new price records, the Biden administration may decide to take action,” Keith Barnett, president of Energy Strategies International LLC (EnSI) told Hart Energy. “Is $25/MMBtu Henry Hub possible this winter? Yes!”
Barnett was referring to the possibility of President Joe Biden’s administration limiting LNG exports to non-free trade agreement (FTA) countries in the event of a drastic gas price spike. U.S. LNG exports through June totaled 1.8 Tcf to non-FTA countries, which include Europe and Japan. LNG shipments to FTA countries only accounted for 300 Bcf.
Goldman Sachs said home-price increases will "stall completely" as the bank turns bearish on...
Goldman Sachs said home-price increases will "stall completely" as the bank turns bearish on the housing market. Economists from the firm expect property prices to stagnate nationwide, with declines likely in certain areas. Find out what parts of the country could see the biggest drops.
