|Day's Range||3.219 - 3.307|
Russia and Uzbekistan began preliminary work on Friday on the first Uzbek nuclear power plant, a project Moscow estimates will cost $11 billion. The plant, to be largely financed by a soft loan from Russia, will allow Uzbekistan to use more of its natural gas for other purposes such as chemicals production or export. Russian President Vladimir Putin and Uzbek President Shavkat Mirziyoyev pressed a symbolic button together at a ceremony in a conference hall in Tashkent to mark the start of geological surveying to decide on a location for the facility.
Today’s early strength may be a technical bounce related to profit-taking and position-squaring in reaction to an unexpected turnaround in China’s stock market. Tensions eased a bit overnight when the heads of the People’s Bank of China, the Securities Regulatory Commission and the Banking and Insurance Regulatory Commission all issued statements expressing support for the stock market and positive economic fundamentals.
North Dakota's daily crude production in August broke the previous all-time high set in July, while natural gas output and producing wells also hit records.
The market was under pressure even before the government data was released at 1430 GMT on Thursday. Ahead of the trading session, sellers were reacting to a report from Bespoke Weather Services which said “weather models maintained long-range cold risks overnight but weakened the intensity of ‘extremely cold’ guidance Wednesday.
Unipec Asia, the trading arm of Chinese oil major Sinopec , is in talks to buy more liquefied natural gas (LNG) from the Exxon Mobil Corp-operated Papua New Guinea (PNG) project, five industry sources told Reuters. If agree, a supply deal would likely start ahead of an expected surge in China's demand this winter and it will be for about three years, two of the sources briefed on the matter said. The exact volumes under discussion were not immediately clear but project holder Oil Search said in its half-yearly results statement in August that negotiations are ongoing to contract the project's final batch of mid-term supply totalling 0.45 million tonnes per annum (mmtpa).
Stock markets fell a bit in the United States to kick off the Thursday session, but it looks as if they are finding a certain amount of buying pressure underneath. Because of this, it’s likely that we could see a bit of a rally after this recent brutal selloff.
Crude oil markets pulled back during the day on Friday to find support underneath that major levels, based upon the Fibonacci retracement tool. Because of this, it looks as if we are going to see a bit of a bounce from here, and if we do I think it’s likely that we will eventually see traders picking the energy market back up.
The US dollar has gone back and forth against the Japanese yen over the last several for our candles, as we consolidate the gains that we had recently enjoyed. It looks as if the market is ready to look for a reason to go higher though.
The British pound continues to hover around the 1.31 handle against the US dollar, as we are simply sitting around in general. The market hasn’t shown much proclivity in taking off so far during the day, and I think we are simply it a bit of a holding pattern.
Unipec Asia, the trading arm of Chinese oil major Sinopec , is in talks to buy more liquefied natural gas (LNG) from the Exxon Mobil Corp-operated Papua New Guinea project, five industry sources told Reuters. The Papua New Guinea project has a total contracted volume of 7.5 mmtpa so far, according to Oil Search. The project has signed mid-term LNG sale and purchase agreements with PetroChina and oil major BP, and has sold 6.6 mmtpa under long-term contracts to Japanese trading giant JERA, Osaka Gas, Sinopec and Taiwan's CPC Corp.
There’s a virtually unknown commodity that is taking markets by storm, and it could very well be the key to the energy storage revolution
On October 10–17, our list of natural gas–weighted stocks fell 0.3%, while natural gas November futures rose 1.1%. On average, natural gas–weighted stocks underperformed natural gas futures during this period.
Natural gas prices moved lower on Thursday mid-day as traders took profit following an in line inventory report released earlier in the day by the Department of Energy. The trajectory of injections remains subdued which will put the US at a year over year deficit when the withdrawal season begins on November 1. Natural gas prices reversed course mid-day on Thursday following an inventory report from the Department of Energy. Prices dropped losing all of Wednesday’s gains, as prices failed near resistance levels at a downward sloping trend line that comes in near 3.37.
Gold prices moved higher on Thursday as US yields whipsawed initially moving higher following a stronger than expected jobless claims report. With claims close to a 59-year low, wages should begin to move higher which is why the Fed in its meeting minutes said that it was likely to move to restrictive monetary policy. With short-term policy still somewhat accommodative, its possible that short term rates rise to 3%, which is close where the 2-year yield is currently pricing. This could buoy the dollar and in turn put downward pressure on gold prices. Despite this scenario, yields moved lower, paving the way for higher gold prices.
The natural gas–weighted stocks under review that are sensitive to US crude oil November futures’ movements based on their correlations with US crude oil November futures in the last five trading sessions are: Chesapeake Energy (CHK) at 92.2% Southwestern Energy (SWN) at 88.7% Gulfport Energy (GPOR) at 86.6% Cabot Oil & Gas (COG) at 79.7% Antero Resources (AR) at 78.6%
As the United States and Saudi Arabia feud escalates, Aramco is looking to invest in Russia’s Arctic LNG project, complicating the geopolitical landscape further
The Nasdaq Commodities exchange will delist its remaining fuel oil contracts that are expiring in 2019 and launch a new natural gas monthly future contract in France and options for the German only electricity market in November, it said on Thursday. The planned delisting is the last step in the complete closure of the current fuel oil product offering at Nasdaq Commodities, the exchange said. The new French natural gas contract is planned to go live for trading and clearing on November 1, while the European style options for the German only electricity market yearly and monthly contracts should come on November 19, Nasdaq Commodities said.
On October 17, US crude oil November futures fell 3% and closed at $69.75 per barrel—below $70 for the first time since September 18. Bearish inventory data might be behind the downside in oil prices.
On October 17, natural gas November futures rose 2.5% and settled at $3.32 per MMBtu (million British thermal units)—the highest closing level for active natural gas prices since January 29. According to Reuters, for the next two weeks, Refinitiv analysts have increased the total degree days from 225 on October 16 to 227 on October 17 in the Lower 48 US states. The increase might result in slightly higher natural gas use for heating than previously expected. The total degree days are still higher than the 30-year average of 188 for these weeks.
HOUSTON/SINGAPORE, Oct 17 (Reuters) - In the middle of a Sino-U.S. trade war, the world's largest publicly traded oil and gas company is turning toward Beijing for business at a time when most of Corporate America is looking elsewhere to avoid the threat of tariffs. Exxon Mobil Corp is placing big bets on China's soaring liquefied natural gas (LNG) demand, coupling multi-billion dollar production projects around the world with its first mainland storage and distribution outlet. Its gas strategy is moving on two tracks: expanding output of the super-cooled gas in places such as Papua New Guinea and Mozambique, and creating demand for those supplies in China by opening Exxon's first import and storage hub, according to an Exxon manager and people briefed on the company's plans.
Exxon Mobil Corp has signed a framework agreement to supply liquefied natural gas to Zhejiang Provincial Energy Group, a senior executive said on Thursday, marking Zhejiang Energy's first long-term supply deal. Peter Clarke, president of Exxon Mobil gas and power marketing, was speaking at the International Petroleum and Natural Gas Enterprise conference at Zhoushan, near Shanghai. Exxon Mobil is stepping up its efforts to meet soaring LNG demand, coupling multi-billion dollar production projects around the world with its first mainland storage and distribution outlet.
Crude oil markets got hammered during the trading session on Wednesday, reaching down towards major support. As I record this, it looks as if the buyers are starting to come back though, so it will be interesting to see whether we can bounce or not.
Natural gas markets continued to grind during the trading session on Wednesday, as we continue to struggle with these high levels. The market has recently been very bullish, but the last several days have been more about digestion than anything else.
The British pound fell on Wednesday, extending down to the 1.31 level, an area that should be supportive based upon the gap at the open of the weekend of course previous action.