Commodity Snapshot
Natural gas prices fell below $2 per million BTUs on Friday, causing a weekly decline due to higher supply and warmer-than-normal temperatures in the U.S., which have plunged 28% year-to-date and could extend the decline to a third trading day if losses persist.
The EIA reported a 40Bcf inventory withdrawal last week, slightly higher than market expectations of 37Bcf. This was the fifth consecutive undersized draw, with the pace remaining below the five-year average fall of 93Bcf. Natural gas inventories increased by 13.6% from last year and 31% higher than the five-year average for this time of year.
HFIR Research predicts that as prices recover, producers will increase supply, pushing prices back down. With disappointing heating demand and storage levels above the 5-year average, the market will be fixated on Lower 48 gas production.
Crude oil prices remained stable due to improved demand in the US and China, and expectations of Fed and European Central Bank rate cuts. TC Energy’s Keystone oil pipeline partially shut operations, lifting prices. The International Energy Agency predicts a well-supplied market in 2024 with slowing demand growth, despite some gains in oil prices.
Stocks to watch include Riley Exploration Permian (REPX), Geopark (GPRK), Denison Mines (DNN), Stabilis Solutions (SLNG), HighPeak Energy (HPK), California Resources (CRC), Nacco Industries (NC), Kodiak Gas Services (KGS), and Crescent Energy (CRGY).
Gold prices experienced a boost from a weaker dollar and a retreat in US 10-year Treasury bond yields, preparing for a third consecutive week of gains. This was due todovish commentary from central bankers and strong demand in China.
Spot gold rose by 0.39% to $2,167.68 an ounce, marking China’s sixteenth consecutive month of gold addition to its reserves. The People’s Bank of China now owns 72.58 million troy ounces, equivalent to 2,257 tonnes, after adding 390,000 last month.
Recent Commodity Price Movements
Energy
Crude oil (CL1:COM)
Natural Gas (NG1:COM)
Metals
Palladium (XPDUSD:CUR) +1.06% to $1,044.88.
Platinum (XPTUSD:CUR) +0.05% to $919.50.
Copper (HG1:COM) +0.19% to $3.93.
Agriculture
Corn (C_1:COM) -0.32% to $424.63.
Wheat (W_1:COM) +0.22% to $524.40.
Cotton (CT1:COM) +1.92% to $101.19.
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Commodity Snapshot Commodity Snapshot
Natural gas prices fell below $2 per million BTUs on Friday, causing a weekly decline due to higher supply and warmer-than-normal temperatures in the U.S., which have plunged 28% year-to-date and could extend the decline to a third trading day if losses persist.
The EIA reported a 40Bcf inventory withdrawal last week, slightly higher than market expectations of 37Bcf. This was the fifth consecutive undersized draw, with the pace remaining below the five-year average fall of 93Bcf. Natural gas inventories increased by 13.6% from last year and 31% higher than the five-year average for this time of year.
HFIR Research predicts that as prices recover, producers will increase supply, pushing prices back down. With disappointing heating demand and storage levels above the 5-year average, the market will be fixated on Lower 48 gas production.
Crude oil prices remained stable due to improved demand in the US and China, and expectations of Fed and European Central Bank rate cuts. TC Energy’s Keystone oil pipeline partially shut operations, lifting prices. The International Energy Agency predicts a well-supplied market in 2024 with slowing demand growth, despite some gains in oil prices.
Stocks to watch include Riley Exploration Permian (REPX), Geopark (GPRK), Denison Mines (DNN), Stabilis Solutions (SLNG), HighPeak Energy (HPK), California Resources (CRC), Nacco Industries (NC), Kodiak Gas Services (KGS), and Crescent Energy (CRGY).
Gold prices experienced a boost from a weaker dollar and a retreat in US 10-year Treasury bond yields, preparing for a third consecutive week of gains. This was due todovish commentary from central bankers and strong demand in China.
Spot gold rose by 0.39% to $2,167.68 an ounce, marking China’s sixteenth consecutive month of gold addition to its reserves. The People’s Bank of China now owns 72.58 million troy ounces, equivalent to 2,257 tonnes, after adding 390,000 last month.
Commodity Snapshot Commodity Snapshot Commodity Snapshot Commodity Snapshot