CES Spotlight Blog

  Blog Categories
August 22nd, 2016

Market Summary for the Week of August 15 - 19, 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 rallied for seven straight trading days starting on August 11, with the prompt month price climbing 16% over that period. This is largely due to OPEC chatter regarding a production freeze, and last week Russia indicated it would also be open to participating. Natural gas prices were steady last week as forecasts did not indicate any upcoming anomalies which would move the market. The storage surplus against the 5-year average is currently at 14%, and stocks are on track to reach a record high before the heating season begins.

To view the complete Market Summary, click here.

Blog Home »