Lost Worlds
Related Articles
Volatility remains in oil markets, although price fluctuations have moderated. Concerns over a supply shortage as Russian energy is shunned after its invasion of Ukraine have intensified as Saudi energy facilities have come under attack from Yemen’s Houthis twice this week.
West Texas Intermediate on the New York Mercantile Exchange rose three out of five trading days, posting its first weekly gain in three weeks. After hitting a high of $114.93 on Wednesday, prices restored some gains before adding $1.56 or 1.4% on Friday to end the week at $113.90 a barrel, down from $112.12 at Monday’s close. List price ended the week at $110.38 a barrel, according to Plains All American. Prices are up around 50% globally so far this year.
Natural gas prices rose on all five days of the trading week, breaching the $5 per Mcf barrier on Tuesday and staying there for the rest of the week. Natural gas prices posted their biggest jump, 29 cents, on Tuesday, followed by increases of 17 cents on Thursday and Friday. Prices closed Friday at $5.571 per Mcf, down from Monday’s close of $4.90.
Natural gas prices are enjoying support both domestically – amid signs that natural gas production may not be enough to help fill storage – and internationally. In the aftermath of Russia’s invasion of Ukraine, the United States and Europe are teaming up to reduce the continent’s dependence on Russian energy. On Friday, a plan was announced in which the United States and a few other countries will increase their exports of liquefied natural gas to Europe by 15 billion cubic meters this year, with even larger shipments expected in the future.
“I’m not surprised at the price movement up or down or the speed,” David Bledsoe, chairman of Henry Resources, told The Reporter-Telegram via email. “With the war raging, volatility is at an all-time high. I think it will stay that way with so many unresolved supply and demand issues. With Biden trying to get Iranian and Venezuelan barrels back on the market combined with volatility in Russian barrels, we’re going to face big swings. It’s still very political of him to beg for international oil supplies while doing what he can to hurt the American producer. We don’t change Not at all about Henry’s business plans due to this uncertainty.We cannot predict how long prices will be high here.
Edward Moya, senior market analyst, Americas at OANDA, said in a news report that Friday’s projectile hitting a Saudi Aramco site sent oil prices positive on Friday.
“This is the second attack this week and raises fears that the energy market could experience a major attack like the one in 2019 which disrupted around half of Saudi Arabia’s production. not be able to shake off fears of disruptions any time soon and this should suggest that prices could continue to rise sharply next week,” Moya wrote.
The attack on Aramco facilities is likely to cause near-term operational disruption and could temporarily reduce Saudi supply, Rohan Reddy, research analyst at Global X Management, a company that manages $2 billion, told Bloomberg. dollars of energy-related assets. “Wider geopolitical issues that persist in the country could lead to continued supply cuts and put upward pressure on oil prices.”
