MARKET WATCH
NYMEX energy futures prices closed mixed Monday


By OGJ editors
HOUSTON, Oct. 7 -- Energy futures prices closed mixed in trading on the New York Mercantile Exchange Monday. Meanwhile, the US Energy Information Administration issued its annual winter forecast, saying consumers can expect higher natural gas prices.

EIA's outlook called for world oil prices to remain firm through the coming winter of 2003-04, primarily because of the recent decision by the Organization of Petroleum Exporting Countries to lower oil production quotas.

"OPEC's decision to cut its production targets reduces the chances for a large end-of-year stock build that OPEC feared could undermine oil prices. Even before OPEC's decision to lower quotas, EIA had projected that the Organization for Economic Cooperation and Development (OECD) commercial inventory situation would remain tight until the end of the year," EIA said.

"Until these inventories are rebuilt above observed 5-year lows, which is not expected to occur until early 2004, West Texas Intermediate (WTI) crude oil prices should remain relatively high over the 3-6 months, then gradually slide to roughly $27/bbl by late 2004," EIA said.

However, tight oil and gas markets have generated relatively high levels of crude oil and petroleum product prices during much of this year, and gas spot prices are expected to average over $5/Mcf for all of 2003, about 70% above the 2002 average, the forecast said.

Natural gas prices
"Continued increases in residential prices are expected for natural gas, reflecting tightness in supplies for much of 2003 and lagged cost recovery by gas distribution companies in consumer bills," it added. The forecast's projections assume normal weather.

Gas demand is expected to fall by 1.1% in 2003 because high prices discourage demand, particularly in the industrial and electric power sectors. Another factor was lower weather-related demand following the first quarter.

"Accelerated economic growth and generally lower prices are projected to increase consumption in 2004," EIA said.

Futures market prices
The November contract for benchmark US light, sweet crudes gained 7¢ to $30.47/bbl, while the December position advanced by 21¢ to $30.31/bbl.

Unleaded gasoline for November delivery dropped 0.55¢ to 81.24¢/gal. Monday on the New York Mercantile Exchange. On Friday, the November contract jumped to 85.11¢/gal, the highest near-month price level since mid-September, analysts said.

Heating oil for November ended lower, slipping by 0.55¢ to settle at 81.24¢/gal.

The November natural gas contract was up by 13.7¢ to $4.90/Mcf on NYMEX, "driven by cool forecasts next week after a break warm up this week," said analysts Tuesday at Enerfax Daily. "Traders are leery of being short with crude oil over $30/bbl and winter still ahead."

In London, the November contract for North Sea Brent oil increased by 18¢ to $28.89/bbl Monday on the International Petroleum Exchange.

The November natural gas contract gained 3¢ to the equivalent of $4.16/Mcf on IPE. The average price for OPEC's basket of seven benchmark crudes increased by 25¢ to $27.85/bbl Friday. OPEC's average basket price rose by 34¢ to $28.19/bbl.

Related Articles

Victoria extends drilling, fracing ban

01/30/2015 The new Victorian Labor government of premier Daniel Andrews has extended the coal seam gas (CSG) exploration and hydraulic fracturing ban in the s...

Oxy cuts capital budget by a third

01/30/2015 In the midst of falling oil prices, Occidental Petroleum Corp., Houston, expects to reduce its total capital spending for 2015 to $5.8 billion from...

Gas-turbine units in transit to Vostochno-Messoyakhskoye field

01/28/2015 JSC Gazprom Neft reported that six gas-turbine power units are in transit to Vostochno-Messoyakhskoye field in the Yamalo-Nenetsk Autonomous Region.

Eni lets $2.54-billion contract for Ghana FPSO

01/28/2015 Eni SPA unit Eni Ghana Exploration & Production Ltd. has let a $2.54-billion contract to Malaysia’s Yinson Holdings Bhd. for the chartering, op...

Chevron, BP, ConocoPhillips join to explore, appraise Gulf of Mexico leases

01/28/2015 Chevron Corp. subsidiary Chevron USA Inc., BP PLC unit BP Exploration & Production Inc., and ConocoPhillips Co. have pledged to work together t...

Carrizo cuts drilling, completion spending by 35%

01/27/2015 Carrizo Oil & Gas Inc., Houston, is cutting its drilling and completion capital expenditure plan for the year by 35% to $450-470 million, but e...

Stone Energy lets pipe supply, installation contracts for Amethyst field

01/27/2015 Stone Energy Corp., Lafayette, La., has let flexible pipe supply and installation contracts to Technip SA for Amethyst field on Mississippi Canyon ...

Hess cuts capital budget by 16% to $4.7 billion

01/27/2015 Hess Corp. has set a capital budget of $4.7 billion for 2015, down 16% from $5.6 billion spent last year. The company at the beginning of 2014 repo...

OGUK: Push to ban fracing in UK ‘ill-informed’

01/26/2015 The House of Commons Environmental Audit Committee’s proposed amendment to the infrastructure bill that would introduce a moratorium on hydraulic f...

White Papers

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

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

Available Webcasts



The Future of US Refining

When 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



On Demand

Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


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


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