Week of April 4, 2016
- Crude fell below $40 per barrel last week after the Saudi deputy crown prince said the kingdom will not freeze production unless Iran and other major producers do so.
- US drivers are using more gasoline, but continued growth in crude stocks and the slow pace of decline in U..S crude production are putting pressure on WTI prices.
- The WSJ published another article on Friday saying banks are tightening credit for US energy companies, which will hurt their ability to tap available reserves as price hedges run out and slower drilling leads to fewer new reserves to use as collateral.
- Natural gas prices jumped to just below $2.00 per MMBtu NYMEX on a larger-than-expected inventory, but prices will stay weak until warmer weather increases the demand for electrical power to run air conditioners.