Oil Prices Up for the Week

Oil Prices Up for the Week
The WTI and Brent crude oil benchmarks finished the day and the week in positive territory.

Henry Hub natural gas for December delivery gained two cents, settling at $2.79. Gas futures are up nearly three percent for the week.

“December natural gas futures continue to gain on colder weather moving across the country aided by a slightly bullish storage report,” said Seng. “Next week’s cold front coming down from Canada is expected to bring well-below-normal temperatures as far south as Texas and then move across to the Northeast.”

Seng added that EIA’s most recent Weekly Natural Gas Storage Report revealed:

  • An injection of 34 billion cubic feet (Bcf) on forecasts calling for 39 Bcf
  • Total gas inventories at 3.729 trillion cubic feet, or 530 Bcf (16.6 percent) higher than the year-ago level and 29 Bcf (0.8 percent) higher than the five-year average
  • 94.9 Bcf per day (Bcfd) of dry gas production last week against 93.4 Bcfd of consumption for the period, with a major gain in residential gas usage
  • Exports to Mexico at 5.2 Bcfd and 7.3 Bcfd in liquefied natural gas (LNG) exports – a new U.S. LNG export record.

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

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


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