Art Berman
Natural gas futures spreads suggest a more optimistic price outlook than front-month prices.
Market fundamentals were mixed but sentiment seems to have repressed the banking crisis for now and has moved backs back to the China demand meme.
Degree day and consumption data suggest a lower-than-normal withdrawal and a C.I. increase in next week’s gas storage report.
The range-bound price situation that dominated oil markets since late 2022 appears to have ended with much higher price volatility.
Reading Fossil Future was a painful experience for me not because of Epstein’s positions but because the book is flawed and dishonest journalism.
I expect a slightly lower-than-normal natural gas withdrawal in next week’s storage report, and a smaller increase in C.I.
Traders & journalists will find reasons to paper over the seriousness of the banking crisis but the truth is that WTI prices should be $60 based on inventory levels.
I expect another lower-than-normal gas storage withdrawal and an C.I. increase in next week’s. I expect C.I. to increase more than it did this week.
Market fundamentals remain bearish as the range of WTI over-pricing moved up from $12.50-$17.50 last week to $15.50 to $20.50 this week.
Epstein’s case is based on a deep state organization that has created and spread fake news about fossil fuels and climate change.
I have little doubt that China’s oil demand will increase but what if it does not increase as much or as fast as some analysts expect?
The collapse in gas prices appears to be over. Both futures and spot prices are increasing toward $3.00 per mmBtu.