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July 18th, 2016

Market Summary for the Week of July 11 - July 15, 2016

by Michelle Tham, Director of Analytics

Synopsis of Last Week's Energy Markets

WTI and Brent both continued to move downward last week, a general trend since late June. Both OPEC and the International 
Energy Agency lowered their 2015 global demand forecasts, and the EIA reported a forecast for a 1 million barrel increase in 
domestic production for 2015 over 2014 estimates. Natural gas prices capped a weekly gain last week on forecasts for lingering 
heat and on speculation that low gas prices will boost demand from electricity generators. Thursday's EIA storage report brought 
news of the largest gain in seven weeks, cutting the deficit to the five-year average levels to 14.2%

Prompt month WTI was relatively flat as opposing market forces held prices in place. Production reversed a five week streak of declines, adding 57,000 barrels per day. The rig count gained for a third week in a row, and although only six rigs were added, the market appears to have reached a short term equilibrium. Natural gas prices fell for the second consecutive week. A storage gain that was larger than expected and a cooler forecast for the end of July put downward pressure on the market.

To view the complete Market Summary, click here.

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