Market watch, May 30


Energy futures prices slipped in trading on the New York Mercantile Exchange (NYMEX) Friday after a mostly lackluster day of trading that ended with hectic selling activity by profit-takers. Traders were reluctant to hold positions over the long Memorial Day weekend in the absence of any new fundamentals-based development. The trading session was also short, because the exchange closed Friday at 1 p.m. ahead of the holiday weekend, which traditionally marks the start of the summer season.

West Texas Intermediate (WTI), the American benchmark crude, lost 51� to settle at $30/bbl for July delivery, while the August contract stood at $29.07, down by 56�.

Refined petroleum products also closed lower, with June home heating oil declining by 2.70� to settle at 76.39�/gal, while unleaded gasoline for the month pulled back by 0.97� to rest at $1.24/gal.

However, NYMEX natural gas for June delivery climbed by 17� to settle at $4.41/Mcf of gas.

After last week's initially sharp run-up, the June International Petroleum Exchange (IPE) natural gas contract lost some of its vigor, closing down Friday at the equivalent of $3.72, off 7�.

There was no after-hours electronic access trading in New York due to the public holiday.

Meanwhile, in London Friday, North Sea Brent crude oil futures ended mixed on the IPE.

Brent futures for July settled at $29.20/bbl, up by 1� from the previous close, whereas the August contract finished 7� lower at $28.12.

Gasoil also moved down -- by $2.50 for the June contract to $229.50/tonne.

North Sea Brent crude oil futures were lower at midday today on the International Petroleum Exchange (IPE) here, in line with brokers' expectations. Brent surged last week in line with futures prices on the New York Mercantile Exchange (NYMEX), but prices in excess of $29/bbl were felt to be a little too high to justify, even given the firm fundamentals and technical indicators.

However, brokers said market sentiment remained bullish and values may climb back beyond $29 bbl in the next couple of weeks, particularly if NYMEX trading continued to be strong.

Today, IPE July Brent futures were being traded at $28.85/bbl, 37� lower than Friday's close. The Exchange was closed Monday, due to a public holiday.

The price of the OPEC basket of seven crudes stood at $28.38/bbl Friday, compared with $28.78 the previous day, according to OPEC secretariat calculations. Last week, the price of OPEC's basket of seven crudes edged up to $27.99/bbl last week, compared with $27.97 in the third week of May.

According to figures released by the OPEC secretariat here today, the price of the basket so far this year, through May 25, has averaged $25.60/bbl. In April, the basket price averaged $22.93/bbl, as opposed to $26.71 in March and $26.84 in February.

For the first quarter of 2000, the basket price averaged $26.11/bbl, as against $23.42 in the fourth quarter of 1999. For 1999 as a whole, the price of the basket averaged $17.47/bbl, compared with $12.28 the previous year.

The OPEC basket comprises Algeria's Saharan blend, Indonesia's Minas, Nigeria's Bonny Light, Saudi Arabia's Arabian Light, Dubai of the United Arab Emirates, Venezuela's Tia Juana, and Mexico's Isthmus crude.

Meanwhile, the OPEC conference is still likely to be held in Vienna on June 21, as previously scheduled, the organization's secretariat announced Monday. Venezuela had asked other OPEC members to consider putting the meeting forward by five days, to coincide with a visit by the country's president, Hugo Chavez, to the secretariat on June 26.

However, with the postponement of elections in Venezuela, originally due to be held last weekend, Chavez may not now be able to make the visit to Austria at that time.

At the last OPEC conference in March, nine of the organization's members agreed to increase production by 1.45 million b/d in a bid to take pressure off prices, which have risen considerably over the year. The current market and the effectiveness of that decision will be examined at the June meeting.

OPEC members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

Related Articles

TAEP: TPI still peaking, but ‘contraction unavoidable’ as oil prices fall

12/12/2014 The Texas Petro Index (TPI), a composite index based on a comprehensive group of upstream economic indicators released by the Texas Alliance of Ene...

MARKET WATCH: NYMEX crude oil price extends slump

12/12/2014 Crude oil prices extended their slump on the New York market with a Dec. 11 settlement of less than $60/bbl for January, and prices continued downw...

US needs more data before ending crude export ban, House panel told

12/11/2014 Much more environmental impact information is needed before the US can reasonably remove crude oil export limits, a witness told a House Energy and...

Rosneft, Essar sign terms of oil supply agreement

12/11/2014 OAO Rosneft and Essar Energy PLC have signed key terms of an oil supply agreement in New Delhi. Rosneft said shipments to India may begin in 2015.

Barton introduces bill to remove US crude export limits

12/11/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

MARKET WATCH: NYMEX crude oil price slides below $61/bbl

12/11/2014 Crude oil prices fell below $61/bbl for January delivery on the New York market Dec. 10 after the Organization of Petroleum Exporting Countries low...

MARKET WATCH: US crude oil prices rebound modestly awaiting inventory report

12/10/2014 Crude oil prices rose modestly on the New York market Dec. 9 while analysts awaited the US government weekly inventory report on crude oil and prod...

ExxonMobil forecasts 35% higher world energy demand by 2040

12/10/2014 A significantly bigger global middle class, expanded emerging economies, and 2 billion more people will contribute to 35% higher world energy deman...

MARKET WATCH: Crude oil prices briefly dip to 5-year lows

12/09/2014 Oil prices on the New York and London markets remained volatile, briefly trading around lows not seen since 2009 although prices were attempting to...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected