The energy sector is off to a higher start, supported by strength in the crude complex and despite...
The energy sector is off to a higher start, supported by strength in the crude complex and despite further weakness in the major market indices. While U.S. stock index futures turned positive after data showed the U.S. economy added more jobs than expected in April, although wage growth slowed, easing some concerns about building inflationary pressures, that strength was short-lived, and equities are negative again in early trading.
WTI and Brent crude oil futures extended gains for the third consecutive day shrugging off concerns about global economic growth as impending European Union sanctions on Russian oil raised the prospect of tighter supply. WTI is trading around $108.69 and Brent crude oil at $111.41, both up in the +40 cent range as of 10:00 AM ET.
Natural gas (NG1:COM) for June delivery brushed up against $9.00 Friday morning trading at an intraday high of $8.96; however, as equities collapsed Thursday, natural gas for December delivery reached $9.14.
A perfect storm that lifted prices to $8.00 earlier in the week, shows no sign of abating.
Demand for gas is not particularly price sensitive, and a historic rally in coal price means there's little flexibility to substitute thermal coal into the power stack, suggesting that US natural gas supply growth will be required to lower prices, and US supply growth has not responded to higher prices:
🔥New wells for Casillas Petroleum in McClain County
Two McClain County wells drilled on a single pad brought in more than 1,600 barrels...
Two McClain County wells drilled on a single pad brought in more than 1,600 barrels of oil combined for Casillas Petroleum Resource Partners, LLC.
Although the wells are now nearly 6-months old, the completion reports just filed in recent days by the Oklahoma energy company showed the Choate 0504 03-10-3wxh reported production of 1,084 barrels of oil a day and 1,125 Mcf of natural gas when completed in January of this year.
Located at 3 5N 4W, a site north of Lindsay, the well had a drilled depth of 18,355 feet. The well had a spud date in October of 2021 according to the completion report.
The second well, the Choate 0504 03-10-2mxh, was drilled at a depth of 18,026 feet on the same pad. Its spud date was also in October of last year per the completionreport.
US natural gas storage rises 77 Bcf to 1.567 Tcf spurring NYMEX futures rall
Chilly spring weather across much of the country curbed net injections to US natural gas storage...
Chilly spring weather across much of the country curbed net injections to US natural gas storage in the final week of April, helping to widen the inventory deficit and propel a rally in NYMEX gas futures.
The US Energy Information Administration May 5 reported a larger-than-expected injection of 77 Bcf to gas storage for the week ended April 29 in a build that barely undershot the prior five-year average.
The NYMEX Henry Hub June contract rebounded about 15 cents, or nearly 2%, after the storage report's release, rising to $8.30/MMBtu after falling steadily in overnight trading from fresh 14-year highs in the mid-$8/MMBtu range, As of Friday morning at 8:55 AM ET, the June contract was down 22 cents at $8.55/MMBtu.
US Fuel Prices Surge Faster than Crude as Exports Tighten Market
U.S. fuel prices have surged faster than crude oil prices in the last month, as the United States has...
U.S. fuel prices have surged faster than crude oil prices in the last month, as the United States has shipped more refined products abroad to supply European markets following Russia's invasion of Ukraine.
Traders say the world's stockpiles of fuel are not likely to increase quickly as big producers like OPEC, are increasing production slowly. The tightness in fuel markets is more alarming, they say because it shows refiners are having trouble meeting demand even as more crude becomes available through big reserve releases.
