Market watch: Natural gas futures fall below $3/Mcf


By the OGJ Online Staff

HOUSTON, July 20 -- Natural gas prices dipped below $3/Mcf Thursday as oil futures also continued a downward spiral on the New York Mercantile Exchange.

The August contract for natural gas dropped 14.8¢ to $2.94/Mcf on the NYMEX. The last time a near-term natural gas contract closed below $3/Mcf was for April 2000 delivery (OGJ Online, July 17, 2001).

"Natural gas price momentum has not really been affected by temperatures that, on average, have been essentially normal this summer," said Robert Morris, industry analyst for Salomon Smith Barney Inc., in his weekly exploration and production report. Moreover, he said, no prolonged periods of above normal temperatures are expected during the rest of the summer season.

Meanwhile, Morris said, US gas production during the second quarter is projected to be up 0.5% from the first quarter of this year and 3.4% above year-ago levels.

The American Gas Association earlier reported that natural gas injections into US underground storage facilities totaled 110 bcf last week, the same as the previous week and up from injections of 70 bcf during the same period a year ago.

Those latest numbers included a one-time correction of 14 bcf. But even when adjusted to 96 bcf, Morris said, US gas storage levels now exceed 2 tcf and are 239 bcf more than at the same time last year.

The August contract for benchmark US light, sweet crudes lost 19¢ to $24.70/bbl Thursday on the NYMEX, while the September contract was down 15¢ to $24.78/bbl. However, both contracts rebounded in after-hours electronic trading to $24.90/bbl and $24.95/bbl, respectively.

Unleaded gasoline for August delivery fell by 1.62¢ to 70.21¢/gal, while home heating oil for the same month was down 0.45¢ to 66.8¢/gal.

In London, the September contract North Sea Brent crude briefly broke support at $24/bbl before settling at $24.05/bbl, down 17¢ for the day on the International Petroleum Exchange. Brokers predicted prices could drop below $23/bbl in that bearish market before the end of summer.

The August natural gas contract jumped by 17.5¢ to the equivalent of $2.84/Mcf on the IPE.

The average price for the Organization of Petroleum Exporting Countries' basket of seven crudes gained 14¢ to $22.78/bbl Thursday.

Related Articles

Statoil to delay development of Johan Castberg, Snorre 2040 projects

03/06/2015 Statoil ASA and its respective partners have reported the postponement of the development of both the Johan Castberg and Snorre 2040 field projects...

Tap Oil starts review of divestment options

03/06/2015 Tap Oil Ltd., Perth, has begun a strategic review of its divestment options, which is being held in the shadow of a boardroom leadership challenge ...

MARKET WATCH: NYMEX prices fall on strengthening dollar

03/06/2015 Oil prices fell modestly on the New York market Mar. 5, which analysts attributed to concerns about an unexpected increase in US gasoline supplies ...

Maritime transportation is moving toward LNG, Brookings speakers say

03/05/2015 Maritime industries’ use of LNG instead of diesel to fuel its vessels is changing from potential to reality, speakers agreed at a Mar. 3 discussion...

US Arctic priorities shortchange Alaskans’ needs, Senate panel told

03/05/2015 As the US prepares to chair the Arctic Council later this year, it recognizes that international decisions can directly affect Alaska and its resid...

EIA: US petroleum product exports rise for 13th consecutive year

03/05/2015 US exports of petroleum products averaged a record 3.8 million b/d) in 2014—an increase of 347,000 b/d from 2013—based on data from the US Energy I...

MARKET WATCH: NYMEX prices rise on easing oil storage concerns

03/05/2015 Oil prices rose on the New York market Mar. 4 after a weekly US government oil and product report showed inventories at the Cushing hub in Oklahoma...

ExxonMobil spending down 12% to $34 billion

03/04/2015

ExxonMobil Corp. plans $34 billion in capital spending during 2015, representing a 12% decrease from 2014.

MARKET WATCH: NYMEX, Brent crude prices settle higher on Saudi oil hike

03/04/2015 Oil prices rose on the New York and London markets Mar. 3 after Saudi Arabia raised the official price for its oil by $1/bbl for US delivery and $1...
White Papers

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Emerson Micro Motion Videos

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