Energy indicators are mixed, but there’s a positive overall picture for the industry, the Dallas office of the Federal Reserve Board (Fed) said in its monthly report.
Articles from June
July natural gas futures were set to open fractionally lower at $2.924 Tuesday as Monday’s hints of cooler weather by the third week of the month continued to show up in overnight weather model runs.
June natural gas was set to open Tuesday about 3.7 cents higher at around $2.847/MMBtu as the weather outlook overnight showed additional heat risks for the next two weeks, according to forecasters.
Natural gas prices for June fell an average of 5 cents from April 27-May 4 as an increasingly bearish weather outlook for the remainder of May added to pressure already being brought on by heavy producer selling, according to NGI’s Forward Look.
North Dakota’s chief oil and natural gas regulator said Friday he expects prices to stay low for the rest of the year, making it harder for the state to maintain its 1 million b/d crude oil production level in the Bakken Shale.
After spending much of June in negative territory, natural gas forward markets ended the month on a strong note, with August gaining an average 7.7 cents between June 23 and 29 as heat is expected to blanket much of the country in the coming weeks to drive up demand, according to NGI’s Forward Look.
The U.S. Bureau of Land Management (BLM) in June plans to offer more than 398,000 acres is eight separate state oil and natural gas lease sales, according to its online leasing service.
June natural gas is set to open 5 cents higher Monday morning at $3.31 as traders digest a variable weather forecast and consider short hedges. Overnight oil markets rose.
In a continuation of a trend that began in January, natural gas and oil production from the nation’s seven most prolific unconventional plays will increase again in June, while the number of drilled but uncompleted (DUC) wells in the plays will also increase, according to data from the Energy Information Administration (EIA).