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May 9th, 2016

Market Summary for the Week of May 2 - 6, 2016

by Meghan Nee and Michelle Tham, Analysts

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 prices dipped last week after gaining for the previous four. OPEC members are producing at near-record rates, but US production is declining with the rig count and a quarter of Canadian production is shut-in from the wildfires in Alberta. Natural gas futures fell last week as mild temperatures are expected to limit seasonal demand. Storage levels are 40 Bcf higher than the previous five-year maximum for this time of year, and the current surplus is the largest glut for this time of year since 2006.

To view the complete Market Summary, click here.

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