MARKETWATCH
Energy prices soar in Friday trading on NYMEX

By OGJ editors

HOUSTON, Oct. 25 -- Natural gas prices on the New York Mercantile Exchange reached their highest level in more than 18 months Friday, and crude oil closed at another NYMEX record, settling above $55/bbl.

The escalating prices stunned traders and analysts. Heating oil also reached a record during the Friday session, which traders said was becoming a routine event given the turbulent energy complex.

News of further growth in China's economy combined with fears of short worldwide oil supplies, some analysts noted. On Friday, China announced that its gross domestic product for the first three quarters of the year was up 9.5% from the same period last year. China imports more oil than any other Asian country.

Meanwhile, Saudi Arabia reaffirmed its commitment to the stability of world oil prices during a meeting of Saudi Oil Minister Ali Al-Naimi and Managing Director of the International Monetary Fund Rodrigo de Rato in Jeddah.

Al-Naimi said Saudi Arabia would provide adequate oil supplies to the market, the Saudi Press Agency reported.

Separately, Organization of Petroleum Exporting Countries Pres. Purnomo Yusgiantoro urged members to increase oil production in preparation for winter.

"Oil demand is increasing ahead of the winter. I ask OPEC and non-OPEC producers to increase oil production to ensure there is enough supply in the market," Yusgiantoro said. OPEC will meet next in December.

Yusgiantoro has said OPEC has spare capacity of 1.5 million b/d.

Energy prices
The December contract for benchmark US light, sweet crudes climbed by 70¢ to $55.17/bbl Friday on NYMEX, while the January contract increased by 64¢ to $54.69/bbl. However, on the US spot market, West Texas Intermediate held steady at $54.47/bbl, the same closing price as on Thursday.

Heating oil for November delivery escalated by 1.45¢ to a closing of $1.59/gal Friday on NYMEX. Gasoline for the same month advanced by 2.54¢ to $1.44/gal.

The November natural gas contract was up by 40.8¢ to $8.11/Mcf. "This is really all about the energy complex as a whole. Speculators are able to push up these prices sky-high because the price of crude oil is soaring," said analysts Sunday at Enerfax Daily.

Natural gas prices have gained more than $3.50/Mcf, or 77%, since Hurricane Ivan arrived in mid-September, Enerfax analysts said.

In London, the December North Sea Brent crude contract increased by 55¢ to $51.27/bbl on the International Petroleum Exchange.

The average price for the OPEC basket of seven benchmark crudes was down by 9¢ to $46.52/bbl Friday.

Related Articles

WAFWA: Aerial survey finds lesser prairie chicken population grew

07/06/2015 A recent range-wide aerial survey found the lesser prairie chicken population rose 25% from 2014 to 2015, the Western Association of Fish & Wil...

Production ramps up from Sunrise oil sands project

07/06/2015 Husky Energy Inc., Calgary, reported that 25 well pairs are now on production at its Sunrise oil sands project in northeastern Alberta. Steaming is...

Buru awarded onshore Canning licenses

07/06/2015 Buru Energy Ltd., Perth, and Mitsubish Corp. have been granted two production licenses for Ungani oil field in the onshore Canning basin of Western...

Cenovus sells royalty business for $3.3 billion

07/06/2015 Cenovus Energy Inc., Calgary, inked an agreement to sell its wholly owned subsidiary Heritage Royalty LP to Ontario Teachers’ Pension Plan for gros...

CERI: Energy, operational efficiencies possible in Canadian oil, gas

07/06/2015 Measures can be taken by operators in the expanding resource-intensive Canadian oil and gas sector to improve both energy efficiency and operationa...

AGL Energy to scale back upstream gas operations

07/06/2015

Gas retailer AGL Energy Ltd., Sydney, says it will exit the oil business and massively scaling back its upstream gas operations.

Woodside lets contracts for Browse LNG project

07/06/2015 Woodside Petroleum Ltd. has let more contracts for the Browse floating LNG project offshore Western Australia. The contracts, awarded to a Technip-...

Macondo settlement seen ‘positive’ for BP

07/06/2015 BP Exploration & Production Inc.’s recent agreement to settle federal and state claims related to the 2010 Macondo blowout and spill improves t...

Emerging producers offered guidelines for governance

07/06/2015 Like most worthy endeavors, governing oil and gas activity at the national level is easier said than done-especially where oil and gas never before...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

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
Available Webcasts

On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


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

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


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