Energy Prices (Daily Change)
| Up/Down | Price | Change | |
|---|---|---|---|
| Crude Oil | ↑ | 93.75 | +3.38 |
| Heating Oil | ↑ | 3.8419 | +.0657 |
| RBOB Gasoline | ↑ | 2.9330 | +.0418 |
| Natural Gas | ↓ | 9.193 | -.487 |
All prices updated at end of day using CME settlements.
Plus, Oil Up 4% On OPEC
Global natural gas prices got some serious relief today. Yet the question remains as to whether it is a top or just a natural pull-back in the overall trend.
Crude oil, on the other hand rose over 3% on the shocking news that OPEC likes high prices.
+Oil jumps nearly 4% on possible OPEC+ supply tightening – Reuters
UK natural gas prices pulled back from the double-top around 550p, slumping 14% in just one day. US natural gas pulled back by about 4%.
Of course, despite the price decline, natural gas prices are at record highs and inflicting serious pain on both industrial and retail consumers globally.
The question remains is whether this is true demand destruction or just a little pause on the way to more pain.
+Global economies flash warning of sharp slowdown – WSJ
Volatility Reigns
As you can see on the chart below, natural gas has the capability to make huge spikes and subsequently pull back violently. If this chart makes you want to revisit your hedging strategy, we should talk.
+US natural gas prices gyrate on shifting export outlook – FT
Chart of the Day – UK Natural Gas
It Takes a Village
When it comes to keeping the lights on, much less navigating the energy transition, it’s going to be an ‘all hands on deck’ situation.
From dried up hydropower to spiking natural gas prices, few economies can afford to take reliable power sources offline.
+California Gov. Gavin Newsom races to keep state’s nuclear plant running – WSJ
