Oil & Energy

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Cabot Oil & Gas and Cimarex on Monday announced a deal to emerge however investors reacted negatively with both stocks falling sharply. $COG closed down 6.8% and $XEC down 7.1%.

The G7 in their communique Friday committed their nations to accelelerate it's transition from coal in a conscious move from fossil to green fuel dependancy. Meanwhile over in China they are building coal capacity, again this shows their clear deference to the G7 

Natural gas futures failed again at $3.00 this week Ther EIA reported a less than expected build of +71 Bcf in gas storage last week, the same as the week prior  The market is focusing on demand.  option strikes and hedging levels.

EIA reported a build in crude of  +1320kbbl (including a -142kbbl draw at Cushing) PADD3 (GulfCoast) gasoline inventory rose a record 5.7mbbl with the Colonial shutdown. Gasoline stocks drew -1963kbbl and Utilization rose 0.2% to 86.3% down from the highest since Pandemic began. Production unchanged to 11,000 kbpd.

Natural gas futures rose after EIA reported a less than expected build of +71 Bcf in gas storage last week. Included a reclassifications from working gas to base gas resulted in decreased working gas stocks of 4 Bcf in the South Central nonsalt region The market is focusing on demand and option strikes and hedging levels.

WTI Oil Futures rose after EIA reported a draw in crude of -427kbbl (including a -421kbbl draw at Cushing and a build of 1.9 mbbl in PADD3 (GulfCoast)).  Gasoline stocks rose +378kbbl and Utilization fell 0.4% to 86.1% down from the highest since Pandemic began. Production rose +100kbbl to 11,000 kbpd.

The OPEC Monthly Oil Market Report (MOMR) for May released Tuesday provides OPEC's outlook for crude oil market developments for the coming year with key developments impacting oil market trends in world oil demand and supply.

Natural gas futures reacted mildly after EIA reported a less than expected build of +60 Bcf in gas storage last week. The market is focusing on a milder weather outlook potentially lowering demand and option strikes and hedging levels.

WTI Oil Futures rose after EIA reported a draw in crude of 7990kbbl (including a +254kbbl build at Cushing and a draw of -10,410kbbl in PADD3 (GulfCoast)).  Gasoline stocks rose +737kbbl and Utilization rose 1.1% at 86.5%, highest since Pandemic began. Production unchanged 10,900 kbpd.

Natural gas futures fell after EIA reported a less than expected build of +15 Bcf in gas storage last week. The Midwest saw only 7 Bcf injected and salt storage had a build of 5 Bcf, 11 Bcf lower than the same week last year. These surprises suggest a pre-winter inventory level of 3.3 Tcf or lower.

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