Here is your daily summary for yesterday, December 14th for Major Commodity daily prices:
After the impressing start of the week, with most major commodities rising and especially the New York City Gate Spot prices exploding and rising by 105%, yesterday it also rose very sharply but didn’t come close to that 105% increase. Except for the NY spot price, Silver and Gold prices showed some moderate rises, so let’s commence:
The New York City Gate Spot rose yesterday by nearly 18% reaching 14.52 USD MMBTU.
On the one hand, it seems that the low temperatures especially in Northeastern U.S. and Florida have a strong effect on Natural gas spot prices, and affect the volatility of these prices. There has been a colder weather then usual according to the EIA report, which might explain the reason for the high increase. On the other hand, there is no shortage in Natural gas and even as consumption is rising (as I have reviewed in a previous post), it still couldn’t explain this recent rise. Furthermore, the rest of the Natural gas prices didn’t show a rise but a fall of roughly 3.5% for Nymex Henry Hub Future Prices (futures for January) and Henry Hub Spot.
Notice, by the way, that according to Forbes, the New York government decided to ban (for environmental purposes) drilling for natural gas while using hydraulic fracking (=”the injection of millions of gallons of water and sand with a smattering of chemicals”). This shouldn’t have any significant effect on the natural gas prices since New York, according to the article, isn’t the biggest supplier of Natural gas. However, since the US is currently the largest supplier of Natural gas, after passing Russia last year, the US has a significant effect on Natural gas prices, and this ban could have an effect if it will spread to the rest of the U.S.
Silver and Gold prices are the second commodity with a moderate increase as it rose yesterday by roughly 0.5. It seems that this is due to the ongoing speculation around the US economy’s stability.
Crude oil prices after yesterday’s rises, the WTI crude oil dropped by 0.37%, and settling at 88.28 USD/b while Brent crude oil rose, and is still hovering above the 90 USD/b marks, by 0.6% and settling at 90.92 USD/b. According to Bloomberg, this recent decline could be because of speculation around the Fed maintaining its current QE plan without further revising it.
And finally, the EURO/ US dollar continue to zigzag this time it decreased by 0.1% as the USD strengthens compare to the Euro. Further, the USD has strengthened against most currencies
In the following table are the main descriptive data from last business day – December 14th including: settled prices, the daily percent change compare to previous business day, and the quantitative change in US dollars of each of these prices and exchange rates (except for USD/CAD, in which the change is in Canadian dollars):
For further reading:
- Moderate inclinations for major commodities such as Silver and Crude oil – news update for December 14th
- Natural gas prices exploding and double up | Silver also rising high – Daily recap Dec 13th
- The parting of crude oil prices from natural gas prices – the declining correlation between the two commodities
- 158th OPEC meeting decisions and analysis – 11th of December
- Weekly outlook for Crude oil, Natural gas, Silver and Gold, 13th – 17th of Dec