MARKET WATCH
Warmer weather deflates US energy prices

By OGJ editors

HOUSTON, Dec. 30 -- Energy prices dipped Monday on the New York Mercantile Exchange as a result of warmer weather across much of the US during the holiday period.

The February contact for benchmark US light, sweet crudes lost 46¢ to $32.40/bbl Monday on NYMEX, while the March position was down by 40¢ to $32.02/bbl. On the US spot market, the cash price for West Texas Intermediate at Cushing, Okla., dropped 35¢ to $32.43/bbl.

Heating oil for January delivery declined by 0.95¢ to 90.13¢/gal on NYMEX. Unleaded gasoline for the same month slipped by 0.27¢ to 91.16¢/gal.

The January natural gas contract expired Monday at $6.15/Mcf, down by 22.9¢ for the day on NYMEX. The February natural gas contract dipped by 14.9¢ to $6.24/Mcf, with most other months remaining flat or up slightly, said analysts Tuesday at Enerfax Daily.
That market was "undermined by mostly mild weather forecast this week and sluggish industrial demand ahead of another long [New Year's] holiday weekend," they said.

"Industrial demand [for natural gas] typically slows at this time of year as many manufacturing plants, which account for more than a third of all [US] natural gas demand, shut down during the Christmas and New Year's holidays," said Enerfax analysts. "Storage inventories are still running well above year-ago levels and should be adequate to meet heating demand even during a cold winter."

The expiring January gas contract, they said, "was weighed down by a steeply discounted Henry Hub[, La., spot] cash market, almost 60¢[/Mcf] below" the near-month futures price.

In London, the February and March contracts for North Sea Brent oil each gained 25¢ to close at $29.31/bbl and $29.06/bbl, respectively, on the International Petroleum Exchange.

The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes lost 38¢ to $29.53/bbl Monday.

NYMEX and IPE were closed Dec. 25-26 for the Christmas holiday. NYMEX will close at 1 p.m. eastern time Wednesday and will remain closed Thursday and Friday for the New Year's holiday. IPE is expected to follow a similar schedule.

Related Articles

CSIS forum: More cooperation needed to address Arctic challenges

04/17/2015 More cooperation not just between government and the oil and gas industry, but with a broad range of residents and businesses inside and outside Al...

BLM proposes higher onshore oil, gas royalty rates

04/17/2015 The US Bureau of Land Management is proposing changes to federal onshore oil and gas royalty rates, rental payments, lease sale minimum bids, civil...

Oil Search decides on complete exit from Yemen

04/17/2015

Sydney and Port Moresby-based Oil Search Ltd. has decided on a complete exit from its acreage in Yemen.

API: US demand for petroleum rose in March, first quarter

04/17/2015 Total US petroleum deliveries, a measure of demand, averaged 19.2 million b/d in March, up 3.4% from a year ago and the highest level for the month...

Yasref continues exports, commissioning activities at Yanbu refinery

04/17/2015 Yanbu Aramco Sinopec Refining Co. Ltd. (Yasref), a joint venture of Saudi Aramco (62.5%) and China Petrochemical Corp. (Sinopec) (37.5%), has expor...

More rig day rate, fleet use declines seen

04/17/2015 Drilling contractors, onshore and offshore, face further declines in day rates and fleet utilization this year as operators slash activity in respo...

MARKET WATCH: NYMEX, Brent continue upward momentum

04/17/2015 Crude oil prices for May delivery climbed for a sixth consecutive day on both New York and London markets Apr. 16, which analysts attributed to sig...

BOEM, BSEE extend comment period for proposed Arctic drilling rules

04/17/2015 The US Bureau of Ocean Energy Management and Bureau of Safety and Environmental Enforcement extended the comment period for proposed oil and gas dr...

Second Mid-Atlantic sale needed in next OCS plan, House panel told

04/16/2015 The US Department of the Interior should schedule a second Mid-Atlantic Outer Continental Shelf oil and gas lease sale—and hold it earlier than in ...
White Papers

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

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...
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