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The Caspian deal is a good base for further negotiation, but crucial pipeline projects might not be completed until market conditions change
On August 3–10, the United States Natural Gas ETF (UNG) rose 3.4%, while the ProShares Ultra Bloomberg Natural Gas ETF (BOIL) rose 6.7%. These ETFs track natural gas futures.
Gold prices took it on the chin on Monday, moving lower as concern about Turkey’s currency crisis is buoying the dollar and weighing on gold. The Yuan, the Chinese currency continues to also decline which appears to be correlated to the decline in gold. Gold prices crashed through support which is now resistance near 1,204, which coincides with the August lows and the July 2017 lows. The next level of target support is seen near the January 2017 lows at 1,180.
US E&P (exploration and production) stocks, particularly oil-weighted stocks, were sluggish last week (ended August 10) due to crude oil prices falling sharply mid-week. Although crude oil recovered slightly on Friday, it fell 1.3% last week to close at $67.60 per barrel. Trade tensions, expectations of lower demand, and strength in the US dollar weighed on crude oil prices, while sanctions on Iranian oil supported them.
A crucial deal just ended a two-decade-long dispute in the Caspian Sea, where Russia, Iran, Turkmenistan, Kazakhstan and Azerbaijan have agreed on the division of huge hydrocarbon resources
USDCAD range bound as decline in the Turkish Lira now seems to have come to a pause while bearish factors on Loonie’s end failed to boost US Greenback.
Today, investors will react to fresh weather and production reports. If the weather forecasts continue to call for cooler temperatures over the next 10-14 days and production holds near the 80 Bcf/d level then prices are likely to fall. In what could be another sign that the October futures contract may have topped last week, the NYMEX winter strip, or the November to March futures contracts retreated late last week, which indicates investors are starting to believe that producers will be able to shrink the supply deficit.
Based on the price action by the dollar and gold, it doesn’t look like the Turkish government has done enough to convince traders that it’s making the right moves. And with money managers willing to press gold lower even at multi-year lows, it looks as if the bears will continue to exert their power today. Even if there is an intraday short-covering rally, it will probably be fueled by technical factors which means gold bears will be waiting to re-short at more favorable price levels if the fundamentals don’t improve.
British Pound consolidates around 1.27 handle amid thin macro calendar as investors prepare for a busy week ahead.
Based on the price action the last five weeks, the direction of the AUD/USD this week is likely to be determined by trader reaction to a pair of downtrending Gann angles at .7284 and .7277.
As sanctions on Iran move forward, the are a number of scenarios which could impact the country's upstream projects, but it’s clear that Chinese and Russian state-owned oil companies are set to win big
(Repeats with no changes) By Andres Guerra Luz and Scott DiSavino Aug 10 (Reuters) - U.S. natural gas exports to Mexico hit all-time highs this month, but a slower-than-expected build out of pipelines inside Mexico has kept increases far below available capacity at the border. The latest uptick in exports, driven by demand from Mexico's power sector, occurred after several Mexican pipelines began operation, allowing U.S. companies to send more fuel across the border, RBN Energy said in a report. (For a graphic on U.S. natural gas exports to Mexico, see: https://tmsnrt.rs/2OoMqnv) Over the last decade, U.S. gas exports to Mexico via pipeline have more than tripled, to 4.9 billion cubic feet per day (bcfd) in August, according to Thomson Reuters data.
Alaskan officials have just published a new report highlighting huge quantities of oil exploration data in an attempt to revitalize the state’s crude industry, and oil majors are taking note
It’s almost certain that by the end of 2017 crypto prices were in a bubble. There is little consensus over the way digital currencies should be valued. If you are in a position to take both long and short positions, you will be able to keep an open mind and trade the most likely direction at any given time.
Will they or won’t they? That is the question. Given the current situation unfolding in Turkey, which is having a dramatic effect on the Euro and in Russia, which saw the Rouble crumble to its lowest level in more than two years, will aggressive counter-trend buyers finally step in and start treating gold like a safe-haven asset, or will they continue to succumb to the stronger U.S. Dollar, which lowers foreign demand for dollar-denominated gold?
Cheniere Energy Inc said on Friday it had signed a 25-year deal to supply liquefied natural gas to Taiwan's CPC Corp, which CPC valued at roughly $25 billion. Cheniere said it will sell 2 million tonnes of LNG per annum on a delivered basis to the state-owned oil and gas company, starting in 2021. It said the purchase price will be pegged to the Henry Hub monthly average, plus a fee.
The latest uptick in exports, driven by demand from Mexico's power sector, occurred after several Mexican pipelines began operation, allowing U.S. companies to send more fuel across the border, RBN Energy said in a report. (For a graphic on U.S. natural gas exports to Mexico, see: https://tmsnrt.rs/2OoMqnv) Over the last decade, U.S. gas exports to Mexico via pipeline have more than tripled, to 4.9 billion cubic feet per day (bcfd) in August, according to Thomson Reuters data. Still, that is less than half the available U.S. gas pipeline capacity to Mexico, which will increase to 13.5 bcfd by year-end when Enbridge Inc's $1.6 billion Valley Crossing pipeline enters service.
Natural gas prices moved lower on Friday, but only by 0.58%, and rebounded from session lows. Prices have been buoyed by declining relative inventories during the heart of the injection season. Inventories are below the 5-year average range, but prices remain below the 5-year average which is 3.14 per mmbtu. Demand picked up according to the EIA and supply was flat.Technicals
Despite the correction in oil prices on Wednesday, U.S. drillers have added a significant number of oil and gas rigs for the week ending Friday 10th August
Based on the early trade, the direction of the September E-mini NASDAQ-100 Index will be determined by trader reaction to a steep uptrending Gann angle at 7454.75 and a downtrending Gann angle at 7434.00.
USDCAD is expected to continue moving uptrend as USD remains strong in broad market while macro updates scheduled in Canadian calendar today have dovish forecast.
Besides the Iranian sanctions, which affect supply and the potential for lower demand, traders on Friday are also reacting to the latest monthly report from the International Energy Agency (IEA). The IEA report said earlier today that the U.S. plan to impose targeted crude sanctions against Iran could significantly impact global supply and exhaust the world’s spare oil capacity cushion.
The early price action suggests that investors continue to wrestle with the storage deficit, rising demand and increased production. It also indicates that production seems to be meeting demand, thereby, having a limited effect on attempts to shrink the supply deficit. The current weather forecast calls for a couple of periods with cooler risks over the next two weeks where cooler weather will try and drive down into the Midwest and pull cooling demand back toward average.
The gold market continued to be volatile during the Thursday’s session trying to rally higher only to give back most of the gains. The strong volatility in the forex market is also affecting the performances in the commodity market and for gold, it has broken significantly in the past few sessions. The silver initially tried to rally during the yesterday’s session reaching towards the $15.50 level but pulled back slightly from there.