Week of July 25, 2016
- Oil peaked in June and is down in July following a pattern set in 2015.
- Production is declining very slowly, (last week there was a small increase in the US rig count) and demand in China has softened
- Inventories remain high. Recent weeks have seen an increase in floating (tanker) storage and hedging by production and exploration companies, a sign that these companies see risk of falling prices.
- Natural gas prices increased slightly to $2.69 per MMBtu NYMEX on expectations of hotter weather across the U.S.