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Inclement Weather Keeps US Energy Products Buoyed

COMMODITIES
  • US energy markets traded well Monday, with WTI crude futures extending the bounce off Friday's lows to $2.50/bbl. Strength across crude oil markets continues follow the recent rally in NatGas, which holds close to $5.00/MMBtu.
  • The oil squeeze persists as markets continue to eye the particularly sluggish return of production from the Gulf following the lingering aftermath of Hurricane Ida. These weather effects have been compounded by further expected disruption from Hurricane Nicholas. The Port of Corpus Christi has already issued shutdown warnings due to expected inclement weather.
  • Prices also remain supported by persistent coverage of an expected supply squeeze across Winter, with Bank of America this morning flagging the risk of$100/bbl oil prices should winter be colder than usual - with oil demand lurching higher by 1-2mln bpd.
  • Precious metals markets are more muted with gold broadly unchanged, although silver modestly underperforms.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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