Natural gas jumps 5% on U.S. heat wave, Europe's dire straits
U.S. natural gas futures ...
U.S. natural gas futures closed at their highest price since June 10, with the contract for August delivery (NG1:COM) settling +5.2% at $8.727/MMBtu on Monday to extend a ~60% rally this month, as some of the highest temperatures on record across the U.S. continued to boost power demand.
The rise in U.S. prices also follows a rally in European gas prices, with Dutch TTF benchmark futures up nearly 12% after Russia's Gazprom said natural gas exports through the Nord Stream pipeline to Germany would drop to just 20% of capacity, which could eventually boost demand for U.S. shipments of liquefied natural gas.
The European price, after conversion, would be ~$52/MMBtu, according to Avi Salzman of Barron's - an enormous premium to U.S. prices.
Without sufficient Russian supplies, Europe likely will need to ration power use and import more gas from elsewhere, which would place U.S. gas producers in a strong position to profit as importers turn to them for gas supplies.
Shell USA to Acquire Midstream MLP in $1.96 Billion Buyout
Shell USA Inc. agreed on July 25 to acquire Shell Midstream Partners LP in a buyout transaction...
Shell USA Inc. agreed on July 25 to acquire Shell Midstream Partners LP in a buyout transaction worth nearly $2 billion.
The transaction marks the latest MLP roll-up in the midstream space largely seen as being driven by the elimination of incentive distribution rights. Previously, the oil and gas industry had financed billions of dollars in pipeline and storage infrastructure through the use of MLPs.
Based in Houston, Shell USA is the U.S. subsidiary of global supermajor Shell Plc headquartered in London. A subsidiary of Shell USA currently owns about 269.5 million common units of Shell Midstream Partners, or roughly 68.5% of Shell Midstream Partner common units, which owns, operates, develops and acquires pipeline and other midstream and logistics assets in the U.S. from its headquarters in Houston.
U.S. stocks finished mixed Monday, with the Nasdaq Composite slipping ahead of the Federal Reserve's...
U.S. stocks finished mixed Monday, with the Nasdaq Composite slipping ahead of the Federal Reserve's two-day policy meeting set to begin July 26 amid recession fears. The Dow Jones Industrial Average DJIA, +0.28% gained 0.3% while the S&P 500 SPX, +0.13% edged up 0.1% and the technology-heavy Nasdaq COMP, -0.43% fell 0.4%, according to preliminary FactSet data. Investors are awaiting the Fed's decision on its interest-rate policy in a busy week for company earnings that will include quarterly results from big tech stocks such as Apple Inc. AAPL, -0.74% and Google parent Alphabet Inc. Consumer discretionary, information technology and communication services were the worst performing sectors in the S&P 500 index on Monday.
Oil rises as dollar strength eases, but Fed weighs
Oil prices are up slightly on Monday, bolstered by a slightly weaker U.S. dollar and stronger equity...
Oil prices are up slightly on Monday, bolstered by a slightly weaker U.S. dollar and stronger equity markets in a session that seesawed between supply fears and expectations that a rise in U.S. interest rates would weaken fuel demand.
Brent crude futures for September settlement were trading up 54 cents, to $103.74 a barrel at 10:40 AM ET, while U.S. West Texas Intermediate (WTI) crude futures were up 72 cents to $95.42 a barrel.
"A slightly weaker U.S. dollar and improving equity markets are supporting oil," UBS oil analyst Giovanni Staunovo said on Monday.
The energy sector is off to a higher start, supported by strength...
The energy sector is off to a higher start, supported by strength in the underlying commodities and in the broader markets. The major market indices edged higher ahead of the Federal Reserve policy meeting this week and on Q2 earnings which will allow investors to gauge the impact of a strong dollar and high inflation.
WTI and Brent crude oil are up in early trading as supply fears outweighed concerns over future aggressive rate hikes which would put a dent in demand. A weaker dollar combined with gains in the broader markets is also adding support to oil futures. European leaders are set to discuss a revised proposal where EU countries would cut gas use by 15% from August to March, in an effort to prepare for a winter of uncertain energy supplies. The European Union is expected to strike a deal on Tuesday. A repaired gas turbine will be installed in the Nord Stream 1 pipeline once it is returned after maintenance, and natural gas will then be supplied in "corresponding volumes", a Kremlin spokesman said on Monday. The Nord Stream 1 pipeline has only been operating at a 40% capacity since it resumed gas flows.
Natural gas futures rose this morning on forecasts for hotter weather and higher demand next week than previously expected.
