Crude oil prices have surged to their highest level since October, driven by a combination of geopolitics, cold weather, and China’s economic recovery. Natural gas prices are also on the rise, with EQT and Cheniere Energy near buy zones.
According to the American Petroleum Institute, crude oil stockpiles fell by 1.442 million barrels in the week through December 27, following a 3.2-million-barrel decline the prior week. The Energy Information Administration reported a sixth straight weekly decline in storage levels, with inventories down 1.2 million barrels.
Optimism for demand may have been boosted by Chinese President Xi Jinping’s New Year’s pledge to be more proactive in boosting economic growth. Natural gas prices are climbing due to predictions of the coldest January in perhaps a decade and the end of Russian gas deliveries to Europe via Ukraine.
Energy stocks such as EQT (46.22) and Cheniere Energy (220.33) are near buy zones, while Occidental Petroleum (50.35) is close to regaining a key technical level. Devon Energy, Schlumberger, and Baker Hughes also saw significant gains, with Baker Hughes testing resistance at its 50-day moving average.
As the energy market continues to navigate geopolitical tensions, cold weather, and economic uncertainty, investors are taking note of the potential opportunities and challenges ahead.
Source: https://www.investors.com/news/oil-natural-gas-prices-near-breakouts-eqt-lng-oxy-rise