U.S. natural gas futures jumped almost 10% yesterday to a two-week high on forecasts for much colder weather and higher than expected heating demand through early March. Futures were 6.3% lower in late-morning trading at $4.42/MMBtu.
JPMorgan predicts oil prices could rise to $125/bbl in the second quarter on lagging production from OPEC and tight global supplies. Dated Brent, the price of cargoes bought and sold in the North Sea, has already surpassed $100/bbl for the first time since 2014.
The spread between oil prices for delivery in April and those for delivery in May surged above $2/bbl, the highest since 2018, suggesting traders are worried over declining U.S. inventories. Crude stocks at Oklahoma’s Cushing hub saw a 1.9-million-barrel draw last week despite a surprise 1.1-million-barrel build nationwide, according to the Energy Information Administration.
The average U.S. price for a gallon of diesel broke $4 last week for the first time since March of 2014.
Gasoline prices in California hit an all-time high yesterday of $4.72/gallon.
Europe’s energy crisis has been a boon for natural gas producers in the U.S., which became the world’s largest LNG exporter in December, as buyers look toward long-term contracts to secure the fuel.
Rising output from the U.S. Permian Basin is driving the federal government’s forecasts for growth in crude production to a record-high 12.6 million bpd in 2023.
U.S. shale producer Devon Energy expects costs to rise 15% this year due to inflation and supply chain constraints.
Thousands of renewable energy projects with a combined 225,000 MW of capacity are waiting for approval from the U.S.’s largest grid operator, a sign of the sector’s struggle to adapt to the rapid expansion of solar and wind power.
Dry bulk shipper Golden Ocean Group saw earnings rise to a record $203.8 million last quarter, helping reverse early pandemic losses for a strong full-year profit.
Tanker carrier Scorpio Tankers saw a net deficit of $234.4 million last year on low oil demand, with rates remaining weak industrywide to start 2022. Swedish tanker operator Concordia Maritime also recently announced an $8.9 million loss on an operating basis last year.
Walmart’s direct-to-fridge delivery service is testing reusable tote bags as part of an effort to reach zero waste in its operations by 2025. The company’s same-store sales jumped 5.6% year over year in the latest quarter, with most of the growth derived from physical stores.