MARKET WATCH
Energy prices fall Friday; Terrorist attack on US consulate may spur rebound

Sam Fletcher
Senior Writer

HOUSTON, Dec. 6 -- Energy prices continued to tumble Friday, with speculators pulling back as warm weather has failed so far to boost winter demand.

However, international wire serves reported Islamic militants early Monday forced their way into the heavily guarded US consulate in Jiddah prompting a gun battle with Saudi Arabian security forces. Initial reports said at least 12 people, including five local consulate staff members, were killed in the 3-hour assault. A new wave of terrorist assaults in the Middle East could renew market fears about crude supply disruptions and trigger a rebound in energy prices.

Meanwhile, ministers of the Organization of Petroleum Exporting Countries are scheduled to meet Friday in Cairo to evaluate the recent fall in crude prices and the loss of value of the US dollar against other currencies, particularly the euro. Prices might have fallen lower Friday, said analysts, if not for a statement last week by one OPEC official that the group might consider reducing production if prices continue to tumble.

Energy prices
The January contract for benchmark US light, sweet crudes fell by 71¢ to $42.54/bbl Friday on the New York Mercantile Exchange, while the February contract was down by 73¢ to $42.75/bbl. On the US spot market, West Texas Intermediate fell by 77¢ to $42.55/bbl. Heating oil for January delivery lost 2.13¢ to $1.24/gal Friday on NYMEX. Gasoline for the same month declined by 0.65¢ to $1.13/gal. The January natural gas contract slipped by 0.015¢ to $6.796/MMbtu on NYMEX.

In London, the January contract for North Sea Brent crude declined by 79¢ to $39.36/bbl Friday on the International Petroleum Exchange.

OPEC's basket of seven benchmark crudes fell by 89¢ to $34.53/bbl Friday. For the whole week, however, the average price dipped by 2¢ to $38.50/bbl. So far this year, OPEC's basket price has averaged $36.07/bbl, up sharply from an average $28.10/bbl in 2003.

Contact Sam Fletcher at samf@ogjonline.com

Related Articles

Low crude prices alter challenges in sub-Saharan Africa, speakers say

03/10/2015 Significantly lower crude oil prices have reduced foreign companies’ interest in developing oil and gas resources in sub-Saharan Africa nations, sp...

Cairn Energy disputing Indian tax claim

03/10/2015 Cairn Energy PLC, Edinburgh, is disputing a tax claim by the Indian government for $1.6 billion related to the 2006 reorganization of its former In...

EIA: Monthly average Brent price up for first time in 8 months

03/10/2015 North Sea Brent crude oil prices averaged $58/bbl in February—up $10/bbl from the January average—representing the first monthly average price incr...

Tap Oil awarded two blocks on North West Shelf

03/10/2015 Tap Oil Ltd. has been awarded 100% interest in Blocks W14-7 and W14-16 in the prospective Barrow and Dampier sub-basins on the North West Shelf as ...

API is examining dilbit’s environmental impacts when released

03/10/2015 The American Petroleum Institute is studying the properties of diluted bitumen (dilbit) and expects to develop findings about how oil sands crude b...

Dunn named president of Questar Pipeline

03/10/2015 Micheal Dunn has been named executive vice-president of Questar Corp., Salt Lake City, and president of the company’s interstate pipeline subsidiar...

MARKET WATCH: NYMEX crude oil prices rebound to $50/bbl

03/10/2015 Crude oil futures settled higher on the New York market Mar. 9, and the contract for April delivery reached $50/bbl after falling sharply in previo...

Sasol takes more cost-cutting measures as oil prices stay low

03/09/2015 Sasol Ltd. hopes to cut $2.5-4.1 billion over a 30-month period, using Dec. 31 as the baseline, in response to what is describes as the “lower-for-...

Outlook for US industrial gas use trimmed

03/09/2015 Industrial demand for natural gas in the US will rise to 22.1 bcfd in 2020 from 19.8 bcfd in 2012, according to an updated analysis of projects in ...
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


Cognitive Solutions for Upstream Oil and Gas

When 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

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


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