Written on: June 27, 2022

Energy Price Report June 2022

Monday, June 27, 2022

Energy Futures Are Extending Gains

Energy futures are extending their gains in the overnight session on Monday amid some weakness in the US dollar, gains in US stock market index futures and flat to higher trade in European shares.  G7 leaders are meeting today in Germany to discuss possible new sanctions on Russia and a revival of the Iran nuclear deal.  It was a quiet morning on the economic calendar with market participants looking ahead to US durable goods orders data and the NAR Pending Home Sales Index for further direction.

Asian Shares Rallied Overnight

Asian shares rallied overnight with the Shanghai Composite adding 0.88%, the Nikkei jumping 1.43% higher, and the Hang Seng rallying 2.35%.  European stock markets were trading flat to higher this morning with the CAC 40 steady, whereas the FTSE 100 had gained 0.6% and the DAX was up 0.8%. US stock market index futures were seeing gains of between 0.3% (Dow futures) and 0.6% (Nasdaq futures) as of this writing.  Also supportive, the US dollar index was down 0.1% this morning.

Petroleum Futures Strengthened

Petroleum futures strengthened on Friday amid weakness in the US dollar and gains in global equities, despite a rise of 10 in the US oil rig count last week. Brent crude rose $3.07 to settle at $113.12 a barrel and WTI jumped $3.35 higher, settling at $107.62 a barrel, gasoline futures gained 11.92 cents to close at $3.8848 per gallon, heating oil futures edged up 2.50 cents to settle at $4.3629 per gallon and natural gas futures edged down 1.9 cents to settle at $6.220 per MMBTU.

Tropical Wave Located Near the Windward Islands

Per the National Hurricane Center, there is a tropical wave located about 900 miles east-southeast of the southern Windward Islands which has a high, 70% chance of cyclone formation over the next 48 hours. The NHC is tracking two more disturbances, one located just off of the coast of Louisiana and another located several hundred miles southwest of the Cabo Verde Islands, but gives them 10% and near 0% chances of cyclone formation over the next two days, respectively.