Market watch: Oil prices rise in anticipation of OPEC action

By the OGJ Online Staff

HOUSTON, Dec. 27 -- Futures prices for oil and refined products jumped Wednesday in anticipation that members of the Organization of Petroleum Exporting Countries will roll back production quotas by 1.5 million b/d at their meeting Friday in Cairo.

Lower temperatures in the eastern US and forecasts of even colder weather also helped boost energy prices, analysts reported.

The February contract for benchmark US sweet, light crudes shot up $1.65 to $21.27/bbl on the New York Mercantile Exchange, while the March position increased $1.63 to $21.45/bbl Wednesday. However, in after-hours electronic trading, the February contract dipped 2¢ to $21.25/bbl while the March contract was unchanged.

Home heating oil for January delivery jumped 4.62¢ to 59.46¢/gal, while unleaded gasoline for the same month rose 4.27¢ to 60.13¢/gal. The January natural gas contract inched up 1.6¢ to $2.91/Mcf on the NYMEX.

Crude futures prices also surged early Thursday on the Tokyo Commodity Exchange in strong support for the upcoming OPEC meeting. Dubai crude shot up $1.31 to $19.32/bbl on that exchange, although Oman blend dropped 16¢ to $18.01/bbl.

In London, North Sea Brent oil futures were reported "comfortably above $20/bbl" in early trading Thursday on the International Petroleum Exchange.

The IPE was closed Wednesday. However, on Monday the February contract for North Sea Brent oil was down 2¢ to $19.34/bbl, while the January natural gas contract plunged 10¢ to $3.98/Mcf.

On his arrival in Cairo Wednesday, Saudi Arabian Minister of Petroleum and Mineral Resources Ali I. Naimi made remarks interpreted by some as virtually guaranteeing that OPEC would roll back its production quotas the full 1.5 million b/d starting in January, although non-OPEC producers are still short of their demanded cut of 500,000 b/d.

Russia, Norway, Mexico, Oman, and Angola so far have pledged to reduce oil production and exports by 462,500 b/d.

"We will be able to decide," Naimi said. However, he added, "The decision will not be an easy one."

The average price for OPEC's basket of seven crudes jumped by 40¢ to $18.18/bbl Wednesday.

For all of last week, however, that basket price averaged $17.57/bbl, up from $16.84/bbl the previous week. So far this year, the basket price for OPEC has averaged $23.23/bbl, compared to an average price of $27.60/bbl for all of 2000.

Related Articles

Quicksilver Canada gets LNG export approval

07/02/2015 Quicksilver Resources Canada Inc. has received approval from the National Energy Board of Canada to export 20 million tonnes/year of LNG from a pos...

Origin lets contract for Otway basin fields

07/02/2015 Origin Energy Ltd., Sydney, has let a $1.3 million (Aus.) contract to Wood Group Kenny for provision of a detailed engineering design for the onsho...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

MARKET WATCH: NYMEX oil prices plummet on crude inventory build, Iran deadline extension

07/02/2015 Oil prices plummeted more than $2/bbl July 1 to settle at a 2-month low on the New York market after a weekly government report showed the first ri...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...

Shell makes FID on Appomattox deepwater development in Gulf of Mexico

07/01/2015 Royal Dutch Shell PLC has taken a final investment decision (FID) on the Appomattox deepwater development, authorizing construction and installatio...

MARKET WATCH: Oil prices decline as US crude inventories post first gain in 9 weeks

07/01/2015 Oil prices on July 1 surrendered much of their gains from the day before after the release of a government report showing the first rise in US crud...

BHP, Woodside move to decommission Stybarrow field

07/01/2015 BHP Billiton Ltd. and Woodside Petroleum Ltd. have started preparations for decommissioning of the Stybarrow group of oil fields in production lice...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

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
Available Webcasts

On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

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