2024-02-21 11:57

Copyrighted Image by: Reuters. Investing.com - U.S. natural gas prices have plunged to their lowest levels in almost four years as lower demand, on the back of warmer conditions, has coincided with surging production. But the worst may now be over. Natural Gas prices At 04:50 ET 09:50 (GMT), the benchmark natural gas futures contract traded at $1.70 per million British thermal units, up on the day, but still close to the lowest level since June 2020, when the Covid-19 pandemic severely hit demand. Why are Natural Gas prices dropping? Natural gas prices have been hit by a combination of factors. Firstly, this winter is on course to being the warmest on record, meaning that demand during this crucial period has been hit hard. Data released earlier this month by the European Union’s climate service showed that global warming has exceeded 1.5 degrees celsius across an entire year for the first time ever. Secondly, this hit to demand has coincided with surging U.S. gas production, which this month matched December’s record 105 billion cubic feet a day. And supply looks likely to increase going forward. BP (NYSE:BP) expects the Calypso deepwater natural gas field off Trinidad and Tobago, which it shares with Woodside Energy (OTC:WOPEY), to get the greenlight when a final investment decision is made as early as the end of next year. Additionally, $6 billion overall was spent on natural gas-focused deals last year, adding on to $10.6 billion worth of deals in 2022, as companies looked to expand their operations to meet demand for natural gas as an energy transition fuel. “U.S. natural gas inventories are likely to exit the winter at an elevated level of 2.2 trillion cubic feet at the end of March,” said analysts at UBS, in a note dated Feb. 19. “Prices need to stay low to slow down production growth over the coming months. With some producers having hedged their production at higher levels, there is a risk it will take longer to see a slowdown in production growth and prices recovering,” UBS added. Natural gas price prediction But the news isn’t all bad. Last month the Gas Exporting Countries Forum predicted tight global liquefied natural gas markets until 2026 as demand rises 1.5% this year and by up to 22% through 2050. Kinder Morgan (NYSE:KMI) also predicted a bullish outlook for natural gas demand at the time of its quarterly results last month, with the U.S. energy infrastructure giant citing higher demand from liquefied natural gas export facilities and increased exports to Mexico. "The future for U.S. natural gas is very bright. And that has positive implications both for our existing business and for our ability to expand," chief executive Kimberly Dang said during an investor call. While UBS recommends investors stay on the sidelines for the immediate future, the Swiss bank retained an optimistic outlook for 2025, seeing the natural gas contract trading around the $3.40 per million British thermal units level at the end of this year. Bank of America Securities tended to agree. “In our view, weak spot prices improve the risk/reward of positioning for changing U.S. natural gas dynamics that remains a case of when, not if,” BOA analysts said, in a note dated Feb. 20. On a technical note, the corrective low for the natural gas futures contract to date is $1.52, which matches solid support seen in March and April 2020, and this remains a potential reversal point. Wednesday’s rally above the previous day’s high of $1.62 provides the first sign of strength that could lead to higher prices, offering hope of a clear change in the recent downtrend pattern. Beyond Natural Gas: Exploring Opportunities in Clean Energy Stocks Explore our curated selection of renewable energy stocks and clean energy ETFs today. From leading solar and wind power companies to innovative cleantech firms, our list offers opportunities to invest in the future of sustainable energy. https://www.investing.com/news/commodities-news/natural-gas-prices-today-and-price-prediction-3309618

2024-02-21 08:59

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar traded marginally higher in early European trade Wednesday, as traders awaited the release of the minutes from the latest Federal Reserve meeting for further clues of the path of U.S. interest rates. At 04:05 ET (09:05 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 104.102. Fed minutes could determine dollar direction The dollar has slipped back slightly of late after waning expectations of early interest rate cuts by the Fed had seen the greenback climb to three-month highs. The currency’s upcoming direction could well be decided by what the minutes from the January Federal Reserve meeting, due for release later Wednesday, indicate in terms of the outlook for U.S. rates. “Recall this was seen as a pretty neutral meeting until Fed Chair Jerome Powell used an opportunity in the press conference to say that a March rate cut was unlikely,” said analysts at ING, in a note. Traders are currently pricing in around 90 basis points worth of easing by the Fed this year, probably starting in June. Beyond the minutes, a slew of Fed officials are also set to speak this week, including Raphael Bostic and Michelle Bowman later on Wednesday. Eurozone consumer confidence data due In Europe, EUR/USD edged higher to 1.0807, ahead of the release of the latest consumer confidence figure for the eurozone. This is expected to show a small improvement in February from the previous month, although it will likely remain very weak. “If there is a ray of light for the eurozone economy it may be that wage growth is not falling as quickly as inflation and that there may be a boost from rising real incomes after all,” said ING. GBP/USD traded marginally lower at 1.2616, after data showed that Britain recorded its highest ever budget surplus in January as Chancellor Jeremy Hunt prepares his annual budget. The U.K. recorded a budget surplus of £16.7 billion in January, due to record seasonal tax inflows, although the broader fiscal picture remains tough. Chinese economic recovery on way? In Asia, USD/CNY edged lower to 7.1891, with data showing increased consumer spending and travel demand during the Lunar New Year holiday, lifting hopes for a bigger recovery in consumption - which is a key driver of the Chinese economy. The People’s Bank of China also cut its five-year loan prime rate by a bigger-than-expected margin on Tuesday, pointing to more support for the Chinese economy. USD/JPY rose 0.1% to 150.14, with the pair remaining above the widely-watched 150 level after data showed a bigger-than-expected increase in Japanese exports in January, while imports contracted more than expected. Breaks above 150 have attracted government intervention in the past, with officials also offering verbal warnings on any such moves last week. https://www.investing.com/news/forex-news/dollar-just-higher-ahead-of-fed-minutes-euro-awaits-confidence-data-3309354

2024-02-21 06:04

Copyrighted Image by: Reuters. Investing.com-- Gold prices rose in Asian trade on Wednesday, extending a recent rebound as the dollar retreated in anticipation of more cues on U.S. interest rates, most notably from the minutes of the Federal Reserve’s late-January meeting. Still, the yellow metal remained largely within a $2,000 to $2,050 an ounce trading range established over the past month, as the outlook for gold was clouded by the prospect of higher-for-longer U.S. interest rates. Spot gold rose 0.3% to $2,029.89 an ounce, while gold futures expiring in April rose 0.1% to $2,040.75 an ounce by 00:21 ET (05:21 GMT). Fed minutes, speakers awaited for rate cues Focus was now squarely on the minutes of the Fed’s late-January meeting for more cues on the possible trajectory of U.S. interest rates. The central bank had kept rates steady during the meeting, but had largely downplayed expectations of early interest rate cuts. Since then, a string of hotter-than-expected U.S. inflation readings saw markets further price out the prospect of early rate cuts, which in turn weighed heavily on gold prices. The yellow metal had briefly broken below the $2,000 an ounce level earlier in February, but saw a strong rebound from two-month lows. Beyond Wednesday’s Fed minutes, focus is also on addresses from a string of Fed officials this week, including Raphael Bostic and Michelle Bowman, both of whom are part of the bank’s rate-setting committee. Higher U.S. rates bode poorly for gold, given that they increase the opportunity cost of investing in the yellow metal. But given that U.S. rates are still expected to eventually fall in 2024, gold and other metal prices are likely to see strong gains, Goldman Sachs analysts said in a note this week. Other precious metal prices also rose on Wednesday. Platinum futures rose 0.3% to $913.10 an ounce, while silver futures rose 0.2% to $23.192 an ounce. Both metals were also nursing losses so far in 2024. Copper prices hit 3-week high on China optimism Among industrial metals, copper prices rose on Wednesday, extending strong overnight gains and hitting a three-week high tracking a slew of stimulus measures from top importer China. Copper futures expiring in March rose 0.4% to $3.8712 a pound. China’s central bank cut interest rates by a bigger-than-expected margin on Tuesday, while Beijing also announced a slew of supportive measures aimed at the country’s ailing property market, in a bid to shore up economic growth. Additionally, official data showed a substantial increase in consumer spending and travel demand during the Lunar New Year holiday, driving up hopes for a recovery in Chinese consumption, which is a key driver of the economy. https://www.investing.com/news/commodities-news/gold-prices-advance-as-dollar-dips-ahead-of-fed-minutes-3309226

2024-02-21 05:04

Copyrighted Image by: Reuters Investing.com-- Most Asian currencies rose on Wednesday, seeing some relief as the dollar retreated in anticipation of more cues from the Federal Reserve on the path of interest rates. Regional units were still nursing steep losses in recent sessions as waning expectations of early interest rate cuts by the Fed saw the dollar race to three-month highs. But the greenback retreated significantly from recent highs this week, offering some relief to Asian markets. Dollar falls with Fed minutes, speakers in sight The dollar index and dollar index futures both fell about 0.1% each in Asian trade, with investors collecting some profits in the greenback before a barrage of Fed cues this week. The minutes of the Fed’s late-January meeting are due later on Wednesday, after the bank kept rates steady and largely downplayed expectations of early interest rate cuts. Beyond the minutes, a slew of Fed officials are also set to speak this week, including Raphael Bostic and Michelle Bowman later on Wednesday. Chinese yuan rises on economic recovery hopes The Chinese yuan rose 0.1% on Wednesday, also benefiting from some optimism over a potential economic recovery in Asia’s largest economy. Data showing increased consumer spending and travel demand during the Lunar New Year holiday drove up hopes over a bigger recovery in consumption- which is a key driver of the Chinese economy. The People’s Bank of China also cut its five-year loan prime rate by a bigger-than-expected margin on Tuesday, pointing to more support for the Chinese economy. While lower rates bode poorly for the yuan, losses in the currency were stemmed by government intervention in currency markets. Media reports showed several Chinese state-owned banks buying yuan and selling dollars on the open market. Other Asian currencies trended higher. The Japanese yen rose 0.1% but remained at the 150 level. Data showed a bigger-than-expected increase in Japanese exports in January, while imports contracted more than expected. The Singapore dollar and South Korean won both traded sideways. The Australian dollar rose 0.3%, leading gains across Asia on optimism over China, while stronger-than-expected Australia wage price index data for the fourth quarter drove bets that the Reserve Bank will keep interest rates higher for longer. The Indian rupee was flat after strengthening further away from the 83 level in overnight trade. https://www.investing.com/news/forex-news/asia-fx-retakes-some-ground-as-dollar-retreats-before-more-fed-cues-3309152

2024-02-21 01:41

Copyrighted Image by: Reuters. Investing.com-- Oil prices settled higher Wednesday as investors awaited further catalysts including a flurry of economic data and an update on U.S. crude inventories due later this week after the Federal Reserve's minutes from its January meeting reinforced expectations for higher for longer rates. At 14:30 ET (19:30 GMT), the West Texas Intermediate crude futures gained 1.1% to settle at $77.91 a barrel, while Brent oil futures rose 0.8% to $82.91 a barrel. Fed minutes suggest peak rates, but no cuts too soon; PMI data up next Federal Reserve policymakers suggested that interest rates have reached a peak, though stopped short of signaling any urgency to pivot to rate cuts as concerns of "upside risks" to inflation begin to emerge, according to the minutes of the Federal Reserve’s Jan.30-31 meeting released Wednesday. The outlook on rate cuts, which would help support hopes for ongoing global growth and crude demand, appear murky at best as the minutes also flagged that voting members expressed "uncertainty associated with how long a restrictive monetary policy stance would need to be maintained." Market focus remains on a string of upcoming economic cues from the U.S., eurozone and Japan, due later this week, for more signals on the world’s largest economies. Further macroeconomic data that could provide updates on global growth is on the calendar later this week includhing purchasing managers index data for February from several major economies, due on Thursday. Fresh crude inventory data eyed Following the Energy Information Administration's report last week of a much larger build in U.S. crude stockpiles, investors will look to the American Petroleum Institute's petroleum data due later on Wednesday for further insight into domestic supplies. The report will arrive ahead of the U.S. inventory data due Thursday. Middle East tensions persist Oersistent concerns over the ongoing conflict in the Middle East including the attack in the Red Sea continue to threaten global supplies, keeping the supply-risk premium in oil prices. The U.S. vetoed a United Nations resolution calling for an immediate ceasefire in Gaza, pointing to little signs of deescalation in the Israel-Hamas war. The veto was Washington's third such move in recent months. A string of attacks on vessels in the Red Sea by the Yemeni Houthis also pointed to continued disruptions in shipping activity through the region, which are expected to potentially delay some oil deliveries in Asia and Europe. https://www.investing.com/news/commodities-news/oil-prices-rangebound-with-middle-east-tensions-demand-signals-in-focus-3309107

2024-02-20 14:01

Canaccord Genuity started research coverage on Galaxy Digital (BRPHF) with a Buy rating and a one-year price target of C$17, implying an upside of more than 28% from the last closing price. Having exposure both in its balance sheet and operations to the cryptocurrency ecosystem, GLXY “represents one of the most diversified ways to play digital assets,” analysts at Canaccord said in a note. “Overall, we view Galaxy as well positioned against what we believe should be an improving landscape for digital assets in 2024,” they added. Canaccord sees Galaxy’s institutional trading business as a “share gainer,” citing several positive catalysts. In particular, this segment should capitalize on the anticipated widespread launch of Galaxy One, its unique crypto prime brokerage platform, along with the approval of various spot BTC ETFs in the U.S. and the forthcoming Bitcoin halving, which are expected to push spot prices upwards. “This, in turn, helps the Galaxy trading business, given potentially higher volatility and overall dollar-weighted trading volumes,” the analysts wrote. They also pointed out that GLXY’s balance sheet is highly influenced by underlying cryptocurrency spot prices, which are adjusted on a quarterly basis. “As such, we would expect to see a Q4 book value for Galaxy to be appreciably higher than what it was exiting Q3.” https://www.investing.com/news/cryptocurrency-news/crypto-stock-galaxy-digital-new-buy-at-canaccord-432SI-3308601