MARKET WATCH
Crude oil futures prices fall upon US Senate's call for halt to filling SPR

By OGJ editors
HOUSTON, Mar. 15 -- Crude oil futures prices fell in New York and London markets Friday upon reports of an amendment to the US Senate budget bill that calls for a halt to filling the US Strategic Petroleum Reserve.

The initial new reports triggered traders to sell off crude, but then subsequent reports about opposition to the nonbinding Senate amendment to the fiscal year 2005 budget, eased some selling pressure by the trading session's close Friday.

The budget bill will go to conference while the US House of Representatives develops its budget bill. Analysts said that the market already was at a heightened sensitivity level in reaction to bombings in Madrid Thursday.

Meanwhile, the UAE said that the Organization of Petroleum Exporting Countroes could delay a decision to cut its output ceiling on Apr. 1 if oil prices remain high and stocks remain low.

"OPEC could revise its decision if there are new developments between now and the next meeting," on Mar. 31 in Vienna, "and if the Ministers feel it is necessary to revise this decision," said UAE Petroleum and Mineral Resources Minister Obaid bin Saif Al-Nasseri.

On Feb. 10, OPEC decided to cut its output ceiling of 24.5 million b/d by 1 million b/d starting Apr. 1. That decision still stands, but Al-Nasseri told OPECNA that current price levels justify a review of that decision.

Replying to a question about what conditions might prompt OPEC to delay a production cut, Al-Nasseri said: "The first would be the price level, the second would be the stocks level," in major consuming countries, including the US.

"We have to discuss this amongst ourselves before we decide what price should trigger the delay of applying the cut," he said. "When the prices go up, this means OPEC will put more oil on the market, we will try not to see it too high for the consumer," he said.

Energy prices
The April crude contract dropped by 59¢ to $36.19/bbl Friday on NYMEX, while the May position lost 57¢ to $35.57/bbl. At one point during trading Friday, the April contract dropped to $35.30/bbl.

On the US spot market, West Texas Intermediate at Cushing, Okla., dropped 60¢ to $36.18/bbl.

Gasoline for April delivery declined by 2.30¢ to $1.0973/gal Friday on NYMEX. Heating oil for the same month slipped by 1.15¢ to 87.89¢/gal. The April natural gas contract declined by 4.7¢ to $5.596/Mcf.

Enerfax Daily analysts said Monday that natural gas prices were pressured by mild weather forecasts for New York and Chicago. In addition, a softer crude market also influenced gas prices.

In London, the April contract for North Sea Brent crude settled lower on the International Petroleum Exchange following news about the SRP. April Brent futures settled Friday at $32.24/bbl, down 59¢ from the previous close.

In addition, the US dollar continued to slip in value compared with other currencies. Analysts said oil futures could continue to fall early this week, but then prices are expected to rebound later in the week if US oil inventories prove bullish again.

Gas oil for April delivery dropped $7.50 to $265.75/tonne. However, the April natural gas contract fell by 1¢ to $3.60/Mcf on IPE.

The average price for OPEC's basket of seven benchmark crudes decreased by 1¢ to $31.94/bbl Friday.


Related Articles

Severance tax would backfire, Pennsylvania association leaders warn

12/17/2014 Enacting a severance tax aimed at Pennsylvania’s unconventional natural gas activity would substantially harm the commonwealth beyond the industry ...

MARKET WATCH: Oil prices held steady on NYMEX awaiting crude inventory

12/17/2014 Oil prices held fairly steady on the New York market in Dec. 16 trading while Brent crude oil prices fell by more than $1/bbl on the London market....

Encana to focus spending on four core shale assets in 2015

12/16/2014 Encana Corp., Calgary, reported plans to spend $2.7-2.9 billion on its capital budget with roughly 80% of this total directed towards four of what ...

Cenovus trims budget, slows oil sands work

12/16/2014 Cenovus Energy Inc., Calgary, is trimming its capital spending in response to declining crude oil prices and will slow development of some of its t...

MARKET WATCH: Oil prices continue falling awaiting economic statistics

12/16/2014 Oil prices on the New York market dropped in Dec. 15 trading following reports of supply disruptions in Libya and awaiting reports of economic stat...

MARKET WATCH: OPEC basket price closes below $59/bbl

12/15/2014 The average crude oil basket price for the 12 members of the Organization of Petroleum Exporting Counties closed below $59/bbl on Dec. 12 while cru...

TAEP: TPI still peaking, but ‘contraction unavoidable’ as oil prices fall

12/12/2014 The Texas Petro Index (TPI), a composite index based on a comprehensive group of upstream economic indicators released by the Texas Alliance of Ene...

MARKET WATCH: NYMEX crude oil price extends slump

12/12/2014 Crude oil prices extended their slump on the New York market with a Dec. 11 settlement of less than $60/bbl for January, and prices continued downw...

US needs more data before ending crude export ban, House panel told

12/11/2014 Much more environmental impact information is needed before the US can reasonably remove crude oil export limits, a witness told a House Energy and...

White Papers

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

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

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


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

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