Month: December 2020

Natural gas futures are down more than 10% on Monday morning following new weather models that suggest warmer weather is ahead. Meteorologists at BAMWX show one model that suggests temperature anomalies for much of the country could be well above average for early January.  For the next two weeks, heating degree days for US-Lower 48 will be below trend, suggesting warmer temperatures and a decline in energy use to heat homes. “I suspect, however, the forecast for January came out extremely bearish over the weekend, triggering the gap opening, but we’ll learn…

Opponents of Enbridge’s Line 3 oil pipeline project are demanding that construction of the pipeline is stopped, the Associated Press has reported, saying the group alleged the U.S. Army Corps of Engineers failed to take into consideration several environmental factors when it issued Enbridge a water quality permit for the project. The $2.6-billion project plans to replace Enbridge’s existing 282 miles of 34-inch pipeline with 337 miles of 36-inch pipe. The new Line 3 would have the capacity to move 370,000 barrels of oil per day, alleviating the takeaway capacity…

Oil has seesawed back and forth over the past week, sandwiched between very strong bullish and bearish forces on each side. Covid-19 is at its worst in many parts of the world, but vaccinations are picking up in earnest as well. Brent edged back above $51 per barrel after the house passed a major stimulus bill on Monday evening. “Markets feel very rangy into the New Year but should find support today from broader risk markets as stocks are soaring on the prospects of larger stimulus checks,” said Stephen Innes,…