Pure fuel costs have been underneath stress recently with seasonally hotter temperatures, so the potential for a sharper bounce was within the technical arrange.
That’s what Artwork Hogan, Chief Market Strategist at B. Riley Wealth, instructed Rigzone late Thursday when requested why the U.S. pure fuel value was rising that day.
Hogan additionally highlighted to Rigzone that the U.S. Power Info Administration’s (EIA) newest weekly petroleum standing report “was constructive for pure fuel in each the manufacturing element and the storage info”. That EIA report was launched on Wednesday and included information for the week ending October 18.
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When he was requested on Thursday why the U.S. pure fuel value was rising that day, Phil Flynn, a Senior Market Analyst on the PRICE Futures Group, instructed Rigzone yesterday, “we appear to be pricing in the potential for some chilly climate and quick masking forward of the EIA report”.
“There’s additionally extra deal with the Euro market the place costs have been driving … a sympathy rally includ[ing]… long run projections of unique demand from India and China,” he added.
Flynn instructed Rigzone that U.S. and international manufacturing information was additionally supportive.
On Thursday, the EIA launched its pure fuel weekly replace and its weekly pure fuel storage report. The previous included information for the week ending October 23 and the latter included information for the week ending October 18.
In a pure fuel market abstract, Frederick J. Lawrence, the ex-Unbiased Petroleum Affiliation of America (IPAA) Chief Economist, instructed Rigzone that hotter climate has continued within the Western and Central elements of the U.S. over the previous week, however warned that that is anticipated to vary quickly.
“Climate forecasts are predicting colder methods within the East along with different elements of the U.S.,” he famous within the abstract, which he despatched to Rigzone yesterday.
“A hotter winter might play a key function in limiting pure fuel consumption however there are different components as nicely which are impacting the market outlook,” he added.
Lawrence instructed Rigzone that storage for pure fuel within the U.S. stays strong.
“The pure fuel storage report … issued by the EIA … [Thursday] revealed a web enhance of 80 billion cubic ft (bcf) from the earlier week,” he highlighted.
“Working fuel in storage was 3,785 Bcf on Friday, October 18, 2024, in accordance with EIA. Shares have been 106 Bcf greater than final 12 months and 167 Bcf above the five-year common of three,618 Bcf,” he added.
Within the abstract, Lawrence instructed Rigzone that producers stay cautious on the pure fuel market outlook and proceed to cut back drilling exercise towards pure fuel.
“Final Friday, the Baker Hughes rig report confirmed that pure gas-directed rotary rigs dropped two to hit 99, which compares to 118 a 12 months in the past,” he identified.
Lawrence additionally famous that, “on the LNG entrance, challenge start-up delays, which embody the massive Golden Move LNG challenge, will moreover weigh on pure fuel export demand”.
“Different initiatives (Rio Grande and Texas LNG) are dealing with court-related delays that can impression supply-related projections. These challenge delays add to the present LNG export allowing pause which restrict progress potential of LNG within the near-term,” he added.
B. Riley Wealth’s web site notes that Hogan’s “distinguished monetary {industry} profession spans 30+ years, throughout which he has targeting the U.S. fairness markets”. The positioning factors out that Hogan has served as a member of the Board of Governors of Boston Inventory Change, Inc., and a member of the Board of Administrators of NASDAQ OMX BX, Inc.
B. Riley Wealth provides a world-class wealth administration and monetary planning platform designed to supply purchasers with a full suite of companies together with brokerage, funding administration, insurance coverage and tax preparation companies, B. Riley’s web site states.
Flynn is described on the PRICE Futures Group web site as “one of many world’s main vitality market analysts, offering particular person buyers, skilled merchants, and establishments with up-to-the-minute funding and danger administration perception into international petroleum, gasoline, and vitality markets”. Flynn can also be a day by day contributor to Fox Enterprise Community, the positioning highlights.
In line with its web site, the PRICE Futures Group’s mission is to “present merchants and buyers with industry-leading buying and selling options, informative market evaluation, and cutting-edge applied sciences which allow environment friendly decision-making”.
The IPAA has represented unbiased oil and pure fuel producers for greater than 90 years, its website states. The group describes itself as a nationwide upstream commerce affiliation representing 1000’s of unbiased oil and pure fuel producers and repair corporations throughout the US.
To contact the creator, electronic mail andreas.exarheas@rigzone.com
