Energy Prices (Daily Change)
| Up/Down | Price | Change | |
|---|---|---|---|
| Crude Oil | ↓ | 87.90 | -1.18 |
| Heating Oil | ↓ | 4.1909 | -.3589 |
| RBOB Gasoline | ↓ | 2.8107 | -.0959 |
| Natural Gas | ↑ | 6.355 | +.671 |
All prices updated at end of day using CME settlements.
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While a slow start to winter in Europe has certainly helped the process of replacing Russian natural gas supplies, it is worth remembering that winter ain’t over yet.
Cold blasts of weather cause spikes in natural gas prices regardless of the underlying supply situation as short term prices take precedent.
It’s worth keeping in mind that plenty of risks still exist that could send prices higher.
“No single forecast is definitive and so-called seasonal outlooks like the one provided by the U.K. come with caveats. They aren’t as precise as the one- to five-day forecasts that weather services can make with relative accuracy. Forecasters, including the Met Office, say the science around such long-range forecasting is still emerging.
Still, as an early look, “this all suggests that heating related gas demand will be up this winter,” said Caroline Bain, chief commodities economist at Capital Economics. “People are not going to switch off the heating if they are cold, and so we’re likely to get sustained heating-related demand.””
+Colder winter in Europe could mean higher natural gas demand – WSJ
Macro Energy
“U.S. oil output climbed to nearly 12 million barrels per day (bpd) in August, government figures showed on Monday, the highest since the onset of the COVID-19 pandemic, even as shale companies have said they do not see [oil and gas] production accelerating in coming months.”
+US oil production nears 12 mln barrels/day, at pre-pandemic high – Reuters
+Biden to float tax penalties on oil companies reaping record profits – FT
Macro Economy
+Dow slips but concludes its best month since 1976 – WSJ
+Can Brazil turn back the clock? – Foreign Affairs
+Issuing perpetual bonds would show that Sunak is serious – FT
Energy Transition
+Explainer: COP27: Conversations to watch at the climate summit – Reuters
+Panasonic to start building Kansas battery plant next month – Reuters
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