MARKET WATCH
Energy futures prices rally after shut in of Mars TLP

By OGJ editors
HOUSTON, May 25 -- Energy future prices rebounded in trading on the New York Mercantile Exchange Monday, led by strong crude oil prices and spiraling natural gas futures prices.

Traders attributed disruption of some oil and natural gas supplies from the Gulf of Mexico for the higher NYMEX energy prices.

Shell Oil Co. Monday reported an "inadvertent shutdown" of the safety valves on the 250,000 b/d, 18-in. Mars oil pipeline in the Gulf of Mexico occurred on Saturday (OGJ Online, May 24, 2004). The pipeline extends about 40 miles from the Mars tension-leg platform to West Delta Block 143 in the gulf.

Consequently, the platform was shut. It had been producing 150,000 b/d of crude oil and 170 MMcfd of natural gas, the company said.

A Shell spokeswoman was unsure when the platform would resume operations (OGJ Online, May 24, 2004).

Energy prices
The new near-month July contract for benchmark US light, sweet crudes soared $1.79 to $41.72/bbl Monday on the New York Mercantile Exchange. The August contract gained $1.68 to $41.24/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., climbed $1.90 to $41.88/bbl.

Gasoline for June delivery gained 4.1¢ to $1.4578/gal Monday on NYMEX, while heating oil for the same month jumped by 5.26¢ to $1.05/gal.

The June natural gas contract jumped 35.2¢ to $6.705/Mcf. Enerfax Daily analysts said, "It was the highest for a front month since mid-January."

Natural gas futures rose on support from crude oil prices and a firmer cash market that was prompted by some warmer weather this week, they added.

In London, the July contract for North Sea Brent crude also settled sharply higher on the International Petroleum Exchange in line with the higher NYMEX oil prices. On Monday, IPE July Brent gained $1.66 to $38.17/bbl. The trading session's high was $38.20 and the low $36.00.

Gas oil for June delivery gained by $19.00 to $332.25/tonne, while the June natural gas contract rose 10¢ to the equivalent of $3.90/Mcf on IPE.

The average price for OPEC's basket of seven benchmark crudes gained 65¢ to $37.05/bbl Monday.

Related Articles

WoodMac: US tight-oil market ‘too robust to bust’

03/25/2014 A drop in global oil price levels or a significant widening of the differential between global oil prices and inland realizations are just two of t...

MARKET WATCH: Oil futures climb on Texas oil spill, Ukraine concerns

03/25/2014 Oil prices climbed on the New York market Mar. 24, which analysts attributed to concerns about a temporary closure of the Houston Ship Channel and ...

Financial questions seen for US shale gas, tight-oil plays

03/25/2014 Financial problems of operators in US shale gas and tight oil plays might hold production growth below current expectations, according to the autho...

MARKET WATCH: Front-month crude oil contract closes up, gas down on week

03/24/2014

The front-month crude oil contract ended the week higher Mar. 21 while natural gas futures prices edged slightly lower.

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