28 ordspråk av Rakesh Shankar
Rakesh Shankar
The draw down in crude inventories came at a time when refinery utilization remained low due to scheduled maintenance shutdowns.
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The drawdown in crude inventories came at a time when refinery utilization remained low due to scheduled maintenance shutdowns.
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The possibility of a warmer than expected summer, along with a spike in crude oil prices and a freak heat wave in Texas that led to a surge in demand for natural gas all helped boost natural gas futures prices to well above $8 this week. Prices look to stay there in the near term, despite the record inventories.
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The recent cold snap seems more like a last hurrah for Old Man Winter, and with barely a few weeks left in the winter season, inventories for natural gas remain in near record territory. This will ensure that any price gains for natural gas in the aftermath of today's report will be limited.
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There are some fears now in the natural-gas market of a return to colder than average weather for the next few weeks.
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There is a real risk that U.S. refineries will be unable to sufficiently bring back capacity in time for the summer driving season. This will force increased reliance on gasoline imports, and higher prices for consumers.
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There's definitely some evidence of consumers adjusting.
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This report marks a healthy start to the gasoline buildup for the summer driving season. A few more weeks of this kind of healthy build will help further assure the market that gasoline prices this summer will head south.
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This week essentially marks the death knell for winter, and we are entering spring with near-record levels of inventory.
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This week essentially marks the death knell for winter.
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Traders are now starting to worry more about demand destruction than about supply disruptions.
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We are entering spring with near-record levels of inventory. A recent cold spell notwithstanding, few people now care about surprises in this release, seeing as how total inventories are nearly 70% above average.
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With production along the Gulf Coast slowly, but surely coming back on line, the outlook for inventories is positive.
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