MARKET WATCH
NYMEX natural gas futures rally on severely cold US forecasts

By OGJ editors
HOUSTON, Jan. 7 -- Natural gas futures prices rose Tuesday on the New York Mercantile Exchange, supported by cold weather forecasts for parts of the US and also by firm support in early crude oil futures trading.

The February contract for benchmark US light, sweet crudes briefly reached $34.35/bbl—the highest level since before the war with Iraq in March.

By the end of the trading session, February crude had slipped by 8¢ from Monday's close to settle at $33.70/bbl Tuesday on NYMEX. The March position dipped by 3¢ to $33.48/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., slipped 5¢ to $33.73/bbl Tuesday.

Fitch Ratings in New York said its analysts believe that crude oil will start to return to lower levels sometime later in 2004, dropping from the above $30/bbl range to levels closer to $20/bbl.

Producers outside the Organization of Petroleum Exporting Countries play a role in that price forecast.

"This decrease will be driven largely by increasing Iraqi exports and non-OPEC production increases as well as Saudi reluctance to give up market share long term. Fitch also expects natural gas prices will moderate sometime after the first quarter
of 2004 from over $5.44/Mcf for 2003 year-to-date to levels around the $4/Mcf range as current natural gas inventories should be more than adequate to meet peak winter consumption," Fitch said in a research note on energy commodities' price outlook for 2004.

As a result of strong oil and gas prices during the last 4 years, most integrated and upstream company balance sheets and credit profiles are strong, the agency said.

"Although Fitch expects some softening of oil and gas prices longer term, realized prices should still remain relatively robust, and resulting cash flow for companies should still be ample and provide for adequate credit protection," analysts noted.

Other prices
Meanwhile, heating oil for February delivery jumped by 0.90¢ to 97.74¢/gal Tuesday on NYMEX, amid continuing forecasts for severely cold weather in the northeastern US. Unleaded gasoline for the same month slipped by 1.14¢ to 96.55¢/gal.

The February natural gas contract rose by 25.5¢ to $7.08/Mcf Tuesday on NYMEX, based "early psychological support from firm crude oil prices," said analysts Wednesday at Enerfax Daily. "Temperatures in New York are expected to drop to 27° [F] today through Saturday."

In London, the February contract for North Sea Brent oil dipped by 7¢ to $30.82/bbl Tuesday on the International Petroleum Exchange. Gas oil for January delivery increased by $7.00 to $290.25/tonne. However the February natural gas contract slipped by 25¢ to $5.29/Mcf Tuesday on IPE.

The dollar sank to a new low against the euro Tuesday. In late New York trading, the euro was at $1.2739.

The average price for OPEC's basket of seven benchmark crudes gained 48¢ to $30.33/bbl Tuesday.

Related Articles

Murkowski, Heitkamp lead Senate call for crude exports to Mexico

02/18/2015 US Sens. Lisa Murkowski (R-Alas.) and Heidi Heitkamp (D-ND) led a coalition asking US Sec. of Commerce Penny Pritzker in a Feb. 18 letter to encour...

Pemex cuts budget by $4 billion

02/18/2015 The board of Petroleos Mexicanos (Pemex) has approved a $4-billion budget reduction for 2015, an 11.5% decrease compared with the previous expendit...

US should rework Azerbaijan relations carefully, House panel told

02/18/2015 The US should pursue relations with Azerbaijan that recognize its strategic importance as an energy supplier to countries farther west but do not i...

Pemex lets contract for Salamanca refinery amid budget cuts

02/18/2015 Mexico’s Petroleos Mexicanos (Pemex), through a contractor, has let a contract to SENER Ingeniería y Sistemas SA, Mexico City, a division of SENER ...

Magnum Hunter slashes budget by 75%

02/18/2015 Magnum Hunter Resources Corp., Houston, plans a $100 million upstream capital expenditure budget for 2015, down from the $400 the company planned f...

Gulf Coast Western buys interest in Smackover acreage in South Alabama

02/18/2015 Gulf Coast Western LLC (GCW), Dallas, has acquired a large working interest in a block of leases covering 29,000 acres in Conecuh and Covington cou...

MARKET WATCH: NYMEX crude oil prices close above $53/bbl

02/18/2015 US light, sweet crude oil prices for March delivery closed above $53/bbl on the New York market Feb. 17 after the market was closed on Feb. 16 for ...

BP Energy Outlook projects global energy demand to jump 37% by 2035

02/17/2015 Global demand for energy is expected to rise by 37% from 2013 to 2035, or by an average of 1.4%/year, due in large part to ongoing economic expansi...

MARKET WATCH: Brent crude oil reaches above $62/bbl

02/17/2015 The April ICE contract for Brent crude oil prices rose modestly in London to settle above $62/bbl on Feb. 16 while the New York Mercantile Exchange...
White Papers

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

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...
Available Webcasts


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

When 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



On Demand

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

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


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


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