Myra P. Saefong and William Watts report in MarketWatch that oil prices ended at their highest level in a month on supply risks and ‘positive risk sentiment.’ They write:
Oil prices settled Monday at their highest level in about a month, finding support from ongoing risks to global supplies as a rally in U.S. equities lifted prospects for the economy and energy demand.
Oil traders are “starting to realize, with the stock market breaking record highs, that it’s unlikely that we’re going to see an economic recession,” Phil Flynn, senior market analyst at The Price Futures Group, told MarketWatch. That is “adding to demand expectations at a time when the supply situation looks to be tightening.”
“Demand is going to exceed expectations if the economy continues to grow, and that’s going to leave a bigger supply deficit once we get deep into the new year,” he said. […]
In the U.S., futures prices for natural gas fell for a fifth straight session to their lowest finish since Dec. 14.
Heating demand for natural gas is “expected to see a quick reversal lower this week,” with the the U.S. National Oceanic and Atmospheric Administration forecasting the return of above-average temperatures for the entire lower 48 states starting this week through early February, said Victoria Dircksen, commodity analyst at Schneider Electric.
Read more here.