WTI and Henry Hub Appear Due for a Technical Correction

WTI and Henry Hub Appear Due for a Technical Correction
One of Rigzone's regular energy prognosticators takes a look at oil and gas price corrections, the peak of the summer driving season and natural gas-fired generation.

(The views and opinions expressed in this article are those of the attributed sources and do not necessarily reflect the position of Rigzone or the author)

In this week’s preview of what to watch in oil and gas markets, one of Rigzone’s regular energy prognosticators takes a look at oil and gas price corrections, the peak of the summer driving season and natural gas-fired generation. Read on below to find out the specifics.

Rigzone: What developments/trends will you be on the lookout for this week?

Tom Seng, Director – School of Energy Economics, Policy and Commerce, University of Tulsa’s Collins College of Business: Both WTI and Henry Hub natural gas appear due for a technical correction to the upside as they have each fallen below their lower Bollinger Bandwidths and their Relative Strength Indicators (RSI) are solidly in an “oversold” condition.

On the fundamental side, the peak of the peak summer driving season is approaching with the upcoming July 4th weekend, a true three-day weekend. Additionally, the summer heat will continue to cause demand for natural gas-fired generation.

[Editor’s note: the WTI oil price has fallen from $120.93 per barrel on June 13 to $106.07 per barrel at the time of writing. The Henry Hub price has fallen from $8.60 per MMBtu on June 13 to $6.23 per MMBtu at the time of writing].

To contact the author, email andreas.exarheas@rigzone.com


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