Rakesh Shankar Near Quotations

The ample supply of stocks for all energy products should continue to place downward pressure on prices in the near term.

The possibility of a warmer than expected summer, along with a spike in crude oil prices and a freak heat wave in Texas that led to a surge in demand for natural gas all helped boost natural gas futures prices to well above $8 this week. Prices look to stay there in the near term, despite the record inventories.

The recent cold snap seems more like a last hurrah for Old Man Winter, and with barely a few weeks left in the winter season, inventories for natural gas remain in near record territory. This will ensure that any price gains for natural gas in the aftermath of today's report will be limited.

Inventories are extraordinarily sturdy, and OPEC's commitment, at least in the near term, to not cut production should only serve to reinforce the ample supply of oil in the market.

Gasoline prices are bound to rise further in the near term as the summer driving season kicks in.