Oil Prices Rebound but Down for the Week
“Gasoline markets were spooked Wednesday by a fire at ExxonMobil’s Baytown, Texas, complex,” he added. “However, the fire was at their olefin plant and was not expected to have any impact on gasoline production there.”
The September Henry Hub natural gas contract price lost eight cents Friday to settle at $2.12. Week-on-week, natural gas is down 2.3 percent.
“September became the ‘prompt’ month this week for natural gas NYMEX futures contracts but appears to be following August’s history of price declines with three-year lows being hit,” said Seng. “Abundant supply continues to counter demand for gas-fired power generation during heat spells that even encompassed the Northeast this past week.”
Seng pointed out that Thursday’s EIA Weekly Natural Gas Storage Report showed:
- An injection of 65 billion cubic feet (Bcf) – higher than forecasts calling for 52 Bcf and giving the contract some upward momentum on the day
- Total inventory at 2.63 trillion cubic feet, or 14.5 percent higher year-on-year but 1.5 percent below the five-year average
- Dry production last week at 90.5 Bcf against consumption at 86.4 Bcf
- Exports to Mexico at 5 Bcf per day (Bcfd) and LNG exports at 6 Bcfd
“July LNG exports set a new record, averaging about 5.2 Bcfd,” said Seng. “Technically, September natural gas is trading below its five-, 10- and 20-day moving averages. Momentum indicators are showing an oversold condition.”
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