Oil and Gas prices rose yesterday, however each of these commodities inclined for a different reason. Gold and silver prices continue to zigzag as they declined yesterday. Today the EIA will publish its report on natural gas storage and consumption.
Let’s quickly review the changes in major energy commodities market and precious metals for February 2nd:
Oil and Gas prices:
Crude oil price (WTI spot), after it declined by 1.59% on Tuesday, yesterday it bounced back and increased by 1.47% as it settled on 90.86 $/b..
Brent oil (spot price) continued its rally and inclined by 1.66% and reached 102.07$/b.
As a result, the spread between the WTI and Brent spot prices has widen and it currently 11.21$/b – the widest spread since the end of last month (for more about figuring out the spread between WTI and Brent oil see here).
For now, one of the main news affecting the crude oil price movement in the news from the Middle East, i.e. Egypt.
The Egyptian riots are still ongoing due to the rioters’ demand from President Hosni Mubarak to immediately step down and not to resign after the elections in September, as he said he would in his address on Tuesday. This situation still puts the region’s stability at a precipice from which there is only speculation if it will subside or escalate.
It seems that as the riots continue the chances for this attempted coup to resolve itself promptly decline and the human fatalities will only increase.
The implications on crude oil prices are flat out, and might continue rising, however, if there won’t be any further escalation in the region, the price hike will subside.
Natural gas prices also increased yesterday but for a whole different reason: the blizzards attacking the many parts of the US, including Northeast and Midwest.
Natural gas spot price (Henry Hub) after it fell by 0.23% on Tuesday, it increased yesterday by 2.94%, as it reached 4.55$/mmbtu. As the extreme cold weather will continue, the chances rise for natural gas prices to further increase today and tomorrow.
Today, the EIA will publish its weekly report on natural gas storage and consumption (see here my review on last week’s EIA report).
Precious Metals prices:
Gold price continues to zigzag, and after it moderately inclined on Tuesday, it declined yesterday by 0.61%, as it reached 1,329 $/t oz.
Silver prices, also declined yesterday by 0.79% and reached 28.29$/t oz.
EURO/ USD declined yesterday by 0.04%, the USD on the other hand weakened against the CAD, as the USD/ CAD declined by 0.25%. For a more detailed report on the EURO/USD check out Forex crunch.
A summary of yesterday’s Prices Changes:
The following table presents the main descriptive data from last business day – February 2nd, for precious metals, energy commodities and exchange rates. The table includes: settled prices, daily percent change, and quantitative change in US dollars (except for USD/CAD, in which the change is in Canadian dollars):