MARKET WATCH
Crude oil futures drop, OPEC lowers world oil demand forecast

Paula Dittrick
Senior Staff Writer
HOUSTON, July 19 -- A lower 2005 world oil demand forecast from the Organization of Petroleum Exporting Countries contributed to New York crude oil futures prices closing July 18 at their lowest in more than 2 weeks.

Another contributing factor to oil's downward direction was Hurricane Emily's diminishing threat to US oil and gas production. Emily was downgraded to a Category One hurricane after it crossed Mexico's Yucatan peninsula on July 18.

Although still ranked Category One early July 19, the US National Hurricane Center in Miami expected Hurricane Emily to strengthen slightly while crossing warmer waters in the western Gulf of Mexico. The projected storm track showed Emily making landfall early July 20 on Mexico's northeast coast near the border with south Texas.

Meanwhile, the US Minerals Management Service reported 30 platforms and 12 rigs were evacuated in the US Gulf of Mexico as of mid-afternoon July 18, according to reports from oil companies.

Shut-in oil production 12,851 b/d, or 0.86% of the normal 1.5 million b/d. Shut-in gas production was 58.65 MMcfd, or 0.59% of the region's normal 10 bcfd production, MMS said.

OPEC outlook
In its Monthly Oil Market Report issued July 18, OPEC lowered its 2005 world oil demand estimate by 150,000 b/d.

OPEC blamed a "slowdown in economic activity in some regions and preliminary demand figures pointing to significantly lower consumption in the first half of the year in some major consuming countries, including China."

The absolute level of demand was reduced for the second, third, and fourth quarters by 300,000 b/d in each quarter, OPEC said.

Global demand growth is now projected to rise an average of 1.62 million b/d this year compared with 2004 levels for a 2005 total of 83.66 million b/d, OPEC said. For 2006, OPEC forecast demand will average 85.2 million b/d.

Energy prices
The August contract for benchmark US light, sweet crudes on the New York Mercantile Exchange dropped 77¢ to $57.32/bbl on July 18, marking its lowest close since June 30.

The September contract declined 71¢ to $58.42/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., shed 77¢ to $57.33/bbl.

Refined products followed the same direction as crude oil prices. Heating oil for August declined by 0.305¢ to $1.6316/gal on NYMEX. Gasoline for August dropped 0.41¢ to $1.6437/gal.

The August natural gas contract slumped by 19.7¢ to $7.652/MMbtu on NYMEX. Enerfax Daily analysts attributed the price drop to lessening concerns about possible storm-related problems for gas rigs and pipelines in the central Gulf of Mexico.

Gas prices dipped in early trading on July 18, hitting the day's low of $7.56 by noon before rebounding slightly in afternoon trading.

In London, the North Sea Brent crude oil contract dropped by 62¢ to $56.99/bbl on the International Petroleum Exchange.

The average price for the Organization of Petroleum Exporting Countries' basket of 11 benchmark crudes fell by 6¢ to $52.38/bbl on July 18.
Contact Paula Dittrick at paulad@ogjonline

Related Articles

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...

Shell makes FID on Appomattox deepwater development in Gulf of Mexico

07/01/2015 Royal Dutch Shell PLC has taken a final investment decision (FID) on the Appomattox deepwater development, authorizing construction and installatio...

MARKET WATCH: Oil prices decline as US crude inventories post first gain in 9 weeks

07/01/2015 Oil prices on July 1 surrendered much of their gains from the day before after the release of a government report showing the first rise in US crud...

BHP, Woodside move to decommission Stybarrow field

07/01/2015 BHP Billiton Ltd. and Woodside Petroleum Ltd. have started preparations for decommissioning of the Stybarrow group of oil fields in production lice...

Tullow Oil provides production update on Jubilee, other fields

07/01/2015 Tullow Oil PLC reported that gross production for the Jubilee field offshore Ghana averaged 105,000 b/d in this year’s first half, up from 102,000 ...
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