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June 13th, 2016

Market Summary for the Week of June 6 - June 10, 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%

Crude oil prices saw an overall gain last week as continued disruptions from Canada and Nigeria fed concerns that the global supply glut is diminishing, allowing the crude market to rebalance after WTI dropped below $30 per barrel at the start of the year. Natural gas prices saw a second straight week of gains, particularly for the eight contracts covering this summer through March 2017. The storage level surplus to the five-year average has shrunk over the past two months, while demand from the power generation sector is projected to be high this summer.

To view the complete Market Summary, click here.

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