MARKET WATCH
Energy prices rebound slightly as market adjusts

Sam Fletcher
Senior Writer

HOUSTON, Dec. 29 -- Energy prices rebounded slightly in a Dec. 28 market adjustment after heating oil prices crashed in the previous trading session on the New York Mercantile Exchange.

Price fluctuations over the last two trading sessions were not based on any marked change in market fundamentals, said analysts who were expecting another bearish report on US inventories of crude and petroleum products.

However, the Energy Information Administration said Dec. 29 that commercial US crude stocks fell by 800,000 bbl to 295.1 million bbl during the week ended Dec. 24, vs. Wall Street analysts' consensus expectations of a 200,000 bbl build and a 10-year average draw of 3.8 million bbl in that period. Distillate fuel inventories also fell by 800,000 bbl, to 119.1 million bbl in the same period, compared with analysts' expectations of a 500,000 bbl decline and a 10-year average build of 670,000 bbl. Heating oil inventories actually declined by 900,000 bbl but were partially offset by increases in diesel fuel. US gasoline stocks increased by 900,000 bbl to 212.3 million bbl, not quite matching analysts' expectations of a 1 million bbl build.

US imports of crude declined by 682,000 b/d to nearly 9.9 million b/d during the week ended Dec. 24. "Imports from Iraq were relatively high last week, while those from Saudi Arabia were lower than average," EIA reported.

Crude input into US refineries increased by 147,000 b/d to more than 15.7 million b/d during the same period, with refineries running at 94.2% capacity, up from 93.4% the previous week. Gasoline production set a weekly record, averaging nearly 9.2 million b/d, EIA said. Heating oil production also increased.

"Meanwhile, with the exception of limited fuel deliveries to Indonesia's Aceh province, it appears at this time that only minor damage was sustained to oil production, refining, and transportation facilities in Southeast Asia as a result of the recent tsunamis," said Robert S. Morris, Banc of America Securities LLC, New York, in a Dec. 29 report. "However, Thailand has lowered its 2005 economic growth forecast to 5.7% from 6%, due to reduced expectations for tourism earnings, although these will be partially offset by increased government spending to rebuild the affected areas," he said.

Energy prices
The expiring January natural gas contract gained 5.3¢ to $6.21/MMbtu Dec. 28 on NYMEX, "buoyed by higher oil prices and steady technical buying after a 5-day losing streak. The market had lost nearly $1.30[/MMbtu], or 17%, in the previous five sessions," said analysts at Enerfax Daily. The new near-month February gas contract increased by 11.6¢ to $6.34/MMbtu.

Heating oil for January delivery, which led the loss in the previous session, rebounded by 1.13¢ to $1.22/gal on NYMEX. Gasoline for the same month inched up by 0.45¢ to $1.05/gal. The February contract for benchmark US light, sweet crudes gained 45¢ to $41.77/bbl Dec. 28 on NYMEX, while the March contract was up by 46¢ to $42.01/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., advanced by 45¢ to $41.78/bbl.

The International Petroleum Exchange in London was closed through Dec. 29 for the Christmas holiday. NYMEX is scheduled to close early Dec. 30 and remained closed Dec. 31 for the New Year's holiday.

The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes declined by 49¢ to $34.81/bbl Dec. 28.

Contact Sam Fletcher at samf@ogjonline.com

Related Articles

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

Quicksilver Canada gets LNG export approval

07/02/2015 Quicksilver Resources Canada Inc. has received approval from the National Energy Board of Canada to export 20 million tonnes/year of LNG from a pos...

FourPoint Energy to acquire Anadarko basin assets from Chesapeake

07/02/2015 FourPoint Energy LLC, a privately owned Denver company, plans to acquire oil and gas assets from Chesapeake Energy Corp. subsidiaries Chesapeake Ex...

Origin lets contract for Otway basin fields

07/02/2015 Origin Energy Ltd., Sydney, has let a $1.3 million (Aus.) contract to Wood Group Kenny for provision of a detailed engineering design for the onsho...

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

MARKET WATCH: NYMEX oil prices plummet on crude inventory build, Iran deadline extension

07/02/2015 Oil prices plummeted more than $2/bbl July 1 to settle at a 2-month low on the New York market after a weekly government report showed the first ri...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...
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


OGJ's Midyear Forecast 2015

When 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

When 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



On Demand

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