Watch Natural Gas longs here at 1.9. Fundamentals aren't hot with warm weather but there might be a squeeze for the responsive players in the game
Another long for me in NG. Not feeling as strong about this one as my primary indicators are running positive while it remains sideways. We'll see.
#USOil slides 4% Monday, amid fears of #OPEC output cut efforts being overshadowed by #US production increase
Supply glut fear,strong USD,Iran-US tension drag #BrentOil #WTIOil down,Monday.Prices firm in early Asia trade today http://hubs.ly/H067_hV0
#API:US crude stock up 14.2mnb,exceeds estimates more than 5x.$Oil extends Tue loss #Asianmarkets lower #Brent #WTI
We've seen good news for oil market recently: 1. S&P Global Platts survey this week showed OPEC production cut compliance for January was at 91%, far above its average compliance rate of 60%. Though Iraq was producing over allocation and Iran, Libya and Nigeria were exempt from cuts, Saudi Arabia, Kuwait and Angola made up for these lapses by making larger cuts than required. 2. Data from IEA showed that global demand for 2016 was healthy at 1.6mnbpd, driven by better than expected European economic growth, colder weather and high vehicle sales. The 2017 forecast for global oil demand growth was revised up by OPEC to 1.19mnbpd (vs 1.16mnbpd) But investors need to keep these factors in mind before being bullish on oil: 1. US shale oil production could contribute to global supply, capping the gains from production cuts. Baker Hughes reported 8% monthly rise in active rigs in January this year at 683, up 4% higher than January 2016. OPEC might have to continue with the cuts to be able to keep the uptrend in oil prices steady. 2. Beyond June, OPEC members might be wary of production cut continuation and compliance as they struggle to maintain market share 3. Countries like Nigeria that have been producing below capacity levels due to the insurgency, could increase supply.Similarly, Iran and Libya, that were exempt from cuts, could also contribute to increasing supply levels and impact oil prices negatively Will the oil markets eventually re-balance this year?
Summary Working gas in storage was 1,462 Bcf as of Friday, April 26, 2019, according to EIA estimates. This represents a net increase of 123 Bcf from the previous week. Stocks were 128 Bcf higher than last year at this time and 316 Bcf below the five-year average of 1,778 Bcf. At 1,462 Bcf, total working gas is within the five-year historical range. http://ir.eia.gov/ngs/ngs.html /NG almost hit a 52 week low on that report....
