MARKET WATCH
Energy prices continue downward tumble

Sam Fletcher
Senior Writer

HOUSTON, Oct. 29 -- Energy prices continued to tumble Thursday with the momentum created by the market's earlier reaction to a larger-than-expected increase in US commercial crude inventories.

The Energy Information Administration reported US stocks of crude increased by 4 million bbl to 283.4 million bbl in the week ended Oct. 22. It said US underground storage of natural gas increased by 26 bcf to more than 3.2 tcf during the same period (OGJ Online, Oct. 28, 2004). That's just 5 bcf below the all-time record high of 3.254 tcf registered in November 2001, said analysts Friday at Enerfax Daily. They expect EIA next week to report an addition of 20-40 bcf, which should set a new natural gas storage record going into this winter's heating season..

Reports that China raised its interest rates to rein in the rapid pace of its economic growth also dampened the energy market. China rarely increases its interest rates, said analysts, and this move is viewed as a serious effort by the Chinese government to prevent its economy from overheating.

Purnomo Yusgiantoro, conference president of the Organization of Petroleum Exporting Countries, said Friday that energy prices likely would continue falling now that world crude supply is again "normal." He said current OPEC production would be sufficient to meet any increased demand in the coming months, but that OPEC ministers would decide whether to hike the group's production ceiling still further at their December meeting in Cairo.

OPEC recently increased its production ceiling to 27 million b/d, effective Nov. 1. However, member countries are reportedly producing 2 million b/d above that level.

Energy prices
The December contract for benchmark US light, sweet crudes fell by $1.54 to $50.92/bbl Thursday on the New York Mercantile Exchange, while the January position lost $1.43 to $50.74/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., also lost $1.54, to $50.93/bbl. Gasoline for November delivery dropped 4.29¢ to $1.29/gal Thursday on NYMEX. Heating oil for the same month retreated by 4.23¢ to $1.45/gal. The new front-month December natural gas contract slipped by 9.1¢ to $8.68/Mcf.

In London, the December contract for North Sea Brent declined by $1.08 to $48.37 on the International Petroleum Exchange.

The average price for OPEC's basket of seven benchmark crudes lost $1.16 to $43.59/bbl Thursday.

Contact Sam Fletcher at samf@ogjonline.com

Related Articles

EOG Resources’ budget down 40% to $4.9-5.1 billion

02/20/2015 EOG Resources Inc., Houston, plans a capital budget of $4.9-5.1 billion in 2015 including production facilities and midstream expenditures, represe...

BHI’s rig count reaches 5-year low; forecast projects more losses

02/20/2015 The US drilling rig count fell 48 units—markedly fewer compared with declines in recent weeks—to settle at 1,310 rigs working during the week ended...

More pragmatism urged for developing Eastern Mediterranean gas

02/20/2015 Eastern Mediterranean nations should abandon inflated expectations and adopt more realistic approaches to developing their natural gas resources, s...

MARKET WATCH: NYMEX crude oil prices down on US supply build

02/20/2015 US light, sweet crude oil prices for March delivery settled at slightly above $51/bbl on the New York market Feb. 19 after a government weekly repo...

PwC: Chemicals industry M&A activity in 2014 reached 10-year high

02/19/2015 Mergers and acquisitions (M&A) activity in the US chemicals business ramped up substantially in 2014, recording the highest volume in a decade ...

Marathon revises down budget by 20%

02/19/2015

Marathon Oil Corp., Houston, has reduced its capital, investment, and exploration budget for 2015 by another 20% to $3.5 billion.

MARKET WATCH: NYMEX crude oil prices drop before weekly inventory report

02/19/2015 US light, sweet crude oil prices for March delivery settled down more than $1/bbl on the New York market Feb. 18 awaiting the government’s weekly r...

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...
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


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