Oil Slips as Gulf Production Resumes After Storm Francine
Oil futures close out a volatile week with modest increases as Hurricane Francine shut in some U.S. offshore...
Oil futures close out a volatile week with modest increases as Hurricane Francine shut in some U.S. offshore production, offsetting longer-term concerns about demand prospects highlighted by OPEC, the EIA and the Paris-based IEA all lowering their demand estimates this week. The BSEE estimated that 732,000 barrels a day, or 42% of Gulf of Mexico output, was shut in by the storm but said Friday that production from undamaged facilities would be brought back immediately. “These cuts are expected to prove brief and within the broader context are unlikely to spur much movement in the crude balances given the importance of shale production that accounts for the major portion of U.S. output,” Ritterbusch says in a note. WTI ends the week up 1.4% at $68.65 a barrel, and Brent is up 0.8% at $71.61 a barrel. Both benchmarks settle down 0.5% on the day.
Nasdaq Posts 6% Weekly Gain as U.S Stocks Climb Ahead of Fed’s Rate Decision
U.S. stocks closed higher Friday, with the S&P 500...
U.S. stocks closed higher Friday, with the S&P 500 and technology-heavy Nasdaq Composite each posting its biggest weekly jump since November ahead of the Federal Reserve’s policy meeting.
The Dow Jones Industrial Average rose 297.01 points Friday, or 0.7%, to close at 41,393.78.
The S&P 500 climbed 30.26 points, or 0.5%, to finish at 5,626.02.
The Nasdaq advanced 114.30, or 0.7%, to end at 17,683.98.
For the week, the Dow gained 2.6%, the S&P 500 rallied 4%, and the Nasdaq jumped 6%. According to Dow Jones Market Data, the S&P 500 and Nasdaq each saw their largest weekly percentage gain since the stretch ending Nov. 3.
Investors are looking ahead to the Fed’s two-day policy meeting next week, which will conclude Wednesday with its highly anticipated decision on where to set interest rates. At last check, according to the CME FedWatch Tool, after the closing bell on Friday, traders were pricing in a 55% chance the Fed will lower its policy rate by a quarter percentage point and a 45% probability of a larger, half-point rate cut.
Hurricane Center Tracks Tropical Depression, 2 More Systems
The remnants of what had been Hurricane Francine spread out over the...
The remnants of what had been Hurricane Francine spread out over the Tennessee Valley on Friday, but the National Hurricane Center was still tracking Tropical Depression Seven and two more systems that could develop. If it does develop, it could become Tropical Storm Gordon.
As of the NHC’s 5 a.m. advisory, the center of TD7 was located 955 miles west-northwest of the Cape Verde Islands with maximum sustained winds of 35 mph as it moved west-northwest at 14 mph.
“A turn toward the west is forecast by tonight, with the system gradually slowing down through the weekend,” forecasters said. “The depression could become a tropical storm later today, however little change in strength overall is anticipated through the weekend.”
EIA Delivers Consecutively Bullish U.S. Gas Storage Report, Lifting Nymex Futures
The US Energy Information Administration delivered yet another bullish...
The US Energy Information Administration delivered yet another bullish US natural gas storage report on Sept. 12, reporting a 40 Bcf injection to domestic inventory during the first week of September.
The latest weekly injection reported by EIA was 10 Bcf, or 20%, smaller than the consensus estimate from S&P Global Commodity Insights' weekly gas storage survey, which predicted a 50 Bcf build for the week.
By historical standards, EIA's latest injection estimate was also bullish. In 2023, EIA reported a 50 Bcf injection to US inventory in the first week of September. Over the past five years, the agency has reported an average injection of 67 Bcf to US gas storage in the corresponding week, EIA data showed.
Following the EIA's latest storage report, the NYMEX October gas futures contract closed for the day at $2.357 per thousand cubic feet,up 3.83%. Year to date, gas is down more than 6%.
Regional U.S. Banks Boost O&G Financing Amid European Retreat
Since 2022, North American regional banks like Texas Capital Bank and...
Since 2022, North American regional banks like Texas Capital Bank and Canadian Western Bank have ramped up their fossil fuel financing, diverging from European banks such as BBVA and ING Groep, which are scaling back due to ESG concerns. According to Marisol Salazar of BOK Financial, North American banks are aggressively pursuing new deals, unlike their European counterparts who are focusing on reducing fossil fuel exposure.
