Nat gas pops on cold weather

As of Friday, the SP500 had given up half its post-election gains and got no help from Fed comments that indicated a cautious approach to rate cuts. Copper prices were down over 5.5% for the week.

This week, we look forward to earnings out of AI powerhouse Nvidia as to how momentum in that sector is holding up. After all, this industry is upending energy markets as well.

~Doug (My Linkedin, let’s connect)

What’s in this issue:

• Energy Market Recap
• IRA Proponents? Big Energy Execs
• Headlines

Energy Markets🛢️Oil prices ended lower by 2.5% on Friday, capping of a week where prices were down 4.77%.​Persistently weak demand out of China demand and an uncertain global economic landscape are the main drivers. Fed comments questioning the need for further rate cuts added fuel to the fire.​Clyde Russel of Reuters points out that China’s crude surplus dipped in October, “as both imports and refinery runs dipped.” 🔥Natural gas prices were higher by 1.3% on Friday and, despite Thursdays big move lower, were up by 5.8% on the week. Additionally, nat gas futures are already up another $0.11 or 4% at the time of this writing.​ Cold weather and rain will be moving across the eastern half of the US with high temperatures falling 20 degrees in some cases from one day to the next later this week, just in time for the start of Thanksgiving travel.​Interesting In-brief report from the EIA showing that associated gas production in the US was up nearly 8% in 2023 vs 2022.

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IRA Proponents? Big Energy ExecutivesEnergy executives are having to manage volatile 4-year political cycles against the need to make decades-long investment decisions.​ Pedro Pizarro, the CEO of utility Edison International and recent chair of industry lobby group Edison Electric Institute, say’s the group will be active on Capital Hill explaining the benefits of the IRA, saying:​ “retaining IRA tax credits for energy storage, transmission, nuclear power, hydrogen, EVs and others are crucial for continued growth”.​ Pizarro joins Exxon Mobil CEO Darren Woods who recently challenged the incoming administration stating:​ “I don’t think the challenge or the need to address global emissions is going to go away. Anything that happens in the short term would just make the longer term that much more challenging.”​ Big Oil vs Big Independents These players, who are accustomed to be at the head of the table, are going head-to-head with the administration of climate change skeptics and its proposed appointees who generally represent shale producers.​ “Wright’s ascension culminates a push by oil wildcatters, who run smaller and often privately held companies, into Trump’s political ranks. Billionaire oilmen donated millions to the president-elect’s campaign, and were among his most prolific backers in any industry.”