Fundamental news that affects the price of crude oil and natural gas

[Overnight]

Here's an appropriate example for the OP, as per a Bloomberg snippet this morning...

"Brent crude rose above $65 a barrel for the first time since June 2015 after one of the world’s most important pipelines for the commodity was shut because of a small hairline crack. West Texas Intermediate was trading at $58.31 a barrel at 5:50 a.m., with the spread between the two major benchmarks close to $7. But the biggest move in energy markets is in U.K. natural gas, with front-month prices jumping as much as 20 percent this morning after a pipeline explosion in Austria threatened flows already under pressure from the cold snap in Britain."

So there you have it. Supply disruptions and weather.

 

[murray t turtle]

Something else that was fun to observe was when hurricane Harvey started bearing down on Texas. Gasoline prices shot through the roof as the refineries started shutting down and when the major pipeline serving the northeast region became submerged underwater. Not to mention, Sep RB contract was just about to expire.

At the same time one would figure that crude prices would have gone up as well because of the gulf wells shutting down, but NO. WTI sank because no refinery output = less crude demand! That one caught me by surprise, because IIRC it was tropical storm Cindy earlier in the year that hit the Gulf and caused crude to rise. Thus was expecting the same from Harvey.

Glad I didn't trade on my expectations that time.

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Actually another surprise to me was XOM,RDSA, MUR,MRO....... were really slow to raise cash, credit, commercial + retail prices,gasoline prices. Did uptrend some when it got going LOL . Oil prices have had a[ very] high correlation to SPY/S&P 500, in the past, for sure, as bone trader noted .

And as an oil + nat gas trader noted -oil has no earnings, which would explain non correlation/many moves stock market+ oil . Oil stocks may make moves up when oil went that direction..............................................................

 

[dealmaker]

California, Quebec hold successful cap-trade auction

California and Quebec held a joint cap-and-trade auction earlier this month, selling all of the current and future vintage greenhouse gas emission allowances and garnering about $813 million for the state's GHG reduction fund that supports climate mitigation programs statewide. (Natural Gas Intelligence)

 

[bone]

California, Quebec hold successful cap-trade auction

California and Quebec held a joint cap-and-trade auction earlier this month, selling all of the current and future vintage greenhouse gas emission allowances and garnering about $813 million for the state's GHG reduction fund that supports climate mitigation programs statewide. (Natural Gas Intelligence)

"Rather than investing in local green projects, the study found that 75 percent of those credits — which are part of a regulatory scheme paid for by California taxpayers — went towards projects outside of California."

https://www.pbs.org/newshour/science/california-cap-and-trade-is-working-for-other-states

It's getting around that after a couple of years of dismal auctions word got out that the allowances have no expiration date - so this year speculators snapped up a good share of the inventory.

 

[bone]

Since California forced out hydrocarbon-intensive industries decades ago - this auction has absolutely no bearing on Nat Gas or Crude Oil fundamental news.