Oil shows weakness as API adds to bearish mood

The Clouds of Ben Bernanke

Natural Gas got a boost off of the export terminal approval last week but the Wall Street Journal reports "The new U.S. energy secretary raised the possibility of delaying further approvals for U.S. companies seeking to export natural gas, saying he wants to review whether the government's studies of the issue are adequate. The comments by Ernest Moniz, who was sworn in as energy secretary Tuesday, came as industry executives urged the Department of Energy to move quickly on export applications, some of which have been waiting for more than a year.  Sempra Energy executive Octavio Simoes, who is in charge of the company's bid to export liquefied natural gas, told lawmakers Tuesday that time is running short for the U.S. because other natural-gas producers around the world are stepping up efforts.

"Potential customers, including some of America's most important trading partners, will simply look to others like Russia and the Middle East for their LNG supply," Mr. Simoes told a briefing organized by the Senate Energy and Natural Resources Committee.”

Of Course any delay of natural gas exports could raise the ire of our European allies.  The Financial Times reports that a "portion of Wednesday's EU summit that will be devoted to energy policy could be boiled down to a single, eye-popping chart that has been making the rounds in Brussels over the last week. It tracks electricity prices — excluding taxes — for industry in the EU, U.S. and Japan. From a common point in 2005, three lines diverge widely to reflect the fact that prices in Europe are now 37% higher than those in the U.S., and almost 20% higher than those in Japan.” Those types of number will add pressure on the U.S. to export gas as soon as possible.

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About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.


Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The information presented by The PRICE Futures Group is from sources believed to be reliable and all information reported is subject to change without notice.

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