Oil prices continue to converge
The price of three major benchmarks for US crude oil continued to converge this week with Louisiana Light (LLS) at parity to Brent. Both were reported by the EIA as being at $108 per barrel. Meanwhile West Texas Intermediate (WTI) narrowed its discount to Brent down to less than $6 per barrel.
It looks like US consumers will have to wait a little longer for the US oil boom to bring lower crude oil prices.
Natural gas in Storage
Natural gas in storage in the US now sits over 40% below year ago levels and over 34% below the trailing five year average (2009-2013). It is even more striking when compared to the spring of 2012 when all the talks was about US natural gas being below $2 per million Btu and how the US would never see higher natural gas prices again. Natural gas in storage as illustrated below is now over 46% (1,165 Bcf) below the storage levels see just 2 years ago. Many forecasters clearly confused the magic of fracking with the realities of weather.