The last week has had some very cold temps in the West and Northwest. This caused significant short-term pricing spikes in natural gas in the Rockies and other western hubs — $10 and higher! However, nationally, the futures prices continue to degrade into the mid $2 range for the summer. We still have a chance to see some late-season cold and that should excite the market to bid up to the future pricing. This should present an opportunity for royalty owners to lock in those prices for the remainder of 2019 and beyond. The real concern regarding further downward pressure is the lack of any more weather and the supply glut showing itself as we begin injection season. Crude oil has gently firmed and is migrating back up to the $60 level. Again, this should be a great time for royalty owners to take some price risk of the table. Like natural gas, crude supply in the coming months looks to put pressure on price for the foreseeable future. Taking advantage of an Advanced Royalty Program or other strategies is a great way for royalty owners to mitigate their risk and stabilize their revenue stream. Contact Advance Royalty Company today and start maximizing your oil royalties.
Extreme Weather In The West Brings Extreme Prices