Natural gas prices down 7% today but up 47% over 3 months. Polar vortex expected. Asks about staying long natural gas given friend's bet on cold winter and AI demand.
Host
Phil Streible
Likes natural gas long-term. Current drop due to updated milder weather forecast easing heating demand concerns. Seasonally volatile period. Technically, $4.50 breakout level (old resistance) should now be support.
Phil Streible
Long-term demand from AI: natural gas supplies ~40% of electricity for AI centers via on-site power plants. Long-term prices heading higher, floor rising, but short-term volatility with weather.
Exxon raising long-term guidance, sees Brent crude around $65. Asks why oil stocks (XOP +4% YTD) diverging from flat/falling oil prices (-2%).
Host
Phil Streible
Oil companies becoming more efficient. Oil prices going down due to persistent global oversupply, weakening demand outlook, concerns about Chinese economy.
Phil Streible
For oil commodity: resistance $60-61, support $58. Break below $58 likely retests lows.