Natural gas futures floundered on Wednesday as November took over as the front month and markets mulled waning weather-driven demand that could free up more domestic supply for storage ahead of winter. The November Nymex contract, in its first session as the prompt month, shed 40.3 cents day/day and settled at $5.477/MMBtu. December dropped 39.0…
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Production Rebounds as U.S. Petroleum Consumption Drops, but Demand Expected to Bounce Back
Domestic petroleum demand declined last week, dragged lower by a drop in distillate fuel consumption, while production recovered in the wake of Hurricane Ida, according to the latest U.S. Energy Information Administration (EIA) inventory report. EIA’s Weekly Petroleum Status Report, released Wednesday, showed output climbed to 11.1 million b/d for the week ended Sept. 24.…
OPEC Says More Energy Sector Investment Needed; Oil Dominance to Hold Through 2045
Already falling short of projected demand growth, a lack of investment in the oil industry threatens to lead to further volatility and a future energy shortfall, according to the Organization of the Petroleum Exporting Countries (OPEC). In its 15th Annual World Oil Outlook (WOO) released Tuesday, the Saudi-led cartel said underinvestment remained one of the…
TotalEnergies Sees Oil Demand Plateauing, but Natural Gas Key to Energy Transition
Global oil demand should plateau earlier than estimated, likely before 2030, but natural gas will continue to play a key role in the energy transition, TotalEnergies said Monday. The Paris-based multi-energy major provided its third annual short-term forecast in the Energy Outlook (EO) 2021. Ahead of the upcoming United Nations (UN) Climate Change Conference, also…
IEA Sees Continued Oil Market Tightening as Inventories Well Below Five-Year Average
The International Energy Agency (IEA) expects continued tightening of the global oil market this month, driven by factors on both the supply and demand sides of the equation. In its latest monthly Oil Market Report, the global energy watchdog said it now expects global oil demand to rise by 5.2 million b/d this year, and…
Global Oil Consumption in 2022 Likely Above Pre-Covid Levels, Says OPEC
Global oil demand in 2022 is gathering pace to exceed pre-pandemic levels, the Organization of the Petroleum Exporting Countries (OPEC) said Monday. In its Monthly Oil Market Report, the cartel said the Covid-19 Delta variant put a crimp in forecasts for the second half of 2021. However, economic growth worldwide in 2021 and 2022 remains…
Fitch Raises Henry Hub, Euro Natural Gas Price Assumptions on Resurgent Demand, Supply Challenges
Fitch Ratings Inc. has substantially raised its Henry Hub and European natural gas price assumptions through 2022, citing “strong year-to-date prices, recovering demand and supply challenges.” “U.S. gas prices have…benefited from heightened weather-driven demand, as well as U.S. dry and associated gas production discipline,” the credit ratings analysts said, adding that liquefied natural gas (LNG)…
U.S. Petroleum Demand Holds Strong Even as Delta Variant Raises New Worries
Consumption of U.S. petroleum climbed last week, driven by demand for jet and distillate fuels, while production ticked up and inventories dropped, the U.S. Energy Information Administration (EIA) said Wednesday. The boost in consumption extended a summer-long trend — a few weekly interruptions aside — despite mounting coronavirus cases that forced downward revisions to oil…
Natural Gas Forwards Slide as Market Senses Summer’s Swan Song
With the hottest temperatures of the summer expected to soon reside in the market’s rearview, natural gas forwards receded during the Aug. 5-11 trading week, including large markdowns in the western United States, NGI’s Forward Look data show. Discounts of around a dime or more in fixed price prompt-month forwards were the norm for most…
Vortexa’s New LNG Chief Sees Strong ‘Momentum’ in Global Natural Gas Market
Vortexa Ltd.’s Felix Booth, head of liquefied natural gas (LNG), doesn’t expect the global market to loosen anytime soon as supplies remain scarce and demand rebounds from lows of the Covid-19 pandemic. Based in Singapore, Booth recently joined energy analytics firm Vortexa, which is aiming to cast a wider net in the evolving LNG business.…