Oil Prices Higher for the Week

Oil Prices Higher for the Week
WTI and Brent finished higher Friday, also showing week-on-week increases.

“The extreme cold that entered the U.S. early in the week supported higher prices, only to have warmer forecasts dampen any rally,” said Seng.

He added the latest EIA Weekly Natural Gas Storage Report revealed:

  • An injection of just 3 billion cubic feet (Bcf) against forecasts calling for a 1-Bcf withdrawal and the five-year average of a 30-Bcf injection for this time of year
  • Total inventory at 3.73 trillion cubic feet (Tcf) – 491 Bcf and 15 percent above the year-ago level and 2 Bcf (0.1 percent) greater than the five-year average
  • 95 Bcf of dry gas production last week compared to consumption that rose to 100.8 Bcf, with a major gain in residential consumption
  • 5.2 Bcf per day (Bcfd) in gas exports to Mexico and 7.1 Bcfd in LNG exports

“Technically, December natural gas is bracketed by its 10- and 20-day moving averages while right on its five-day moving average,” Seng concluded. “Momentum indicators are showing a solidly overbought condition.”

To contact the author, email mveazey@rigzone.com.


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