MARKET WATCH: Energy prices rebound on stabilizing US stock market

By OGJ editors
HOUSTON, Aug. 24 -- Energy prices rebounded Aug. 23 on the New York Mercantile Exchange from sharp losses in previous days. Analysts attributed rising prices to a stabilizing stock market, which reduced concerns about an economic slowdown.

Energy markets had fallen recently despite Hurricane Dean making landfall twice in Mexico because many investors believed that credit might be tightening so much as to stifle US economic growth.

Some analysts mentioned lingering concerns about weakening oil demand in coming weeks because the summer peak driving season is winding down and because weather forecasts indicate a mild winter for the Northern Hemisphere.

Following Hurricane Dean, Mexico's state-owned Petroleos Mexicanos on Aug. 24 reopened two of its three main oil exporting ports in the southern Gulf of Mexico. Pemex previously said 10.5 million bbl of crude in storage would resume shipping when the ports reopened.

Pemex reported minimal rig damage, saying it expects to reach prehurricane levels of oil production by next week. More than 18,000 workers were evacuated ahead of the storm, and they were expected to return to work in the Bay of Campeche Aug. 24.

Energy prices
The NYMEX light, sweet crude oil contract for October delivery on Aug. 23 rose 57¢ to close at $69.83/bbl. The November contract rose 53¢ to close at $69.56. On the US spot market, WTI at Cushing rose 72¢ to $70.04/bbl.

In other NYMEX trading, heating oil for September delivery rose 1.27¢ to $1.9610/gal. The September contract for reformulated blend stock for oxygenate blending (RBOB) increased 3.42¢ to $1.923/gal.

The September natural gas contract traded lower for most of the Aug. 23 NYMEX trading session but jumped just before the close, ending at $5.62/MMbtu or 4.4¢ higher than the previous day. The September gas contract reached an 11-month low of $5.58/MMbtu on Aug. 22.

On Aug. 23, the Energy Information Administration reported the injection of 23 bcf of natural gas into US underground storage for the week ended Aug. 17. US gas storage exceeds 2.9 tcf (OGJ Online, Aug. 23, 2007). In US spot trading, gas at Henry Hub, La., lost 10.5¢ to $5.81/MMbtu.

On the London market, the October IPE contract for North Sea Brent crude rose $1.16 to settle at $69.86/bbl.

The average price for the Organization of Petroleum Exporting Countries' basket of 11 reference crudes climbed 42¢ to $67.00/bbl on Aug. 23.

Related Articles

Highlander well in South Louisiana flows 75 MMcfd

02/23/2015 Production testing by Freeport-McMoRan Oil & Gas, a subsidiary of Freeport-McMoRan Inc., on the Highlander discovery onshore South Louisiana in...

Statoil starts production from Oseberg Delta 2 in North Sea

02/23/2015 Statoil ASA reported the start of production from Oseberg Delta 2 in the North Sea. The field is tied back 14 km to Oseberg field’s center by two s...

AER sets new seismic monitoring rules for Duvernay in the Fox Creek area

02/23/2015 The Alberta Energy Regulator (AER) announced seismic monitoring and reporting requirements for companies using hydraulic fracturing in the Duvernay...

API: US oil product demand reached highest January level since 2008

02/23/2015 US oil product demand rose 1.5% year-to-year to an average 19.2 million b/d in January, its highest level for the month since 2008, the American Pe...

Oil forecasts need a new asterisk for supply instability

02/23/2015

Do projections of worldwide oil supply need another asterisk?

Partners submit Johan Sverdrup development plan

02/23/2015 Partners Statoil ASA, Lundin Petroleum AB, Petoro, Det Norske Oljeselskap ASA, and Maersk Oil have submitted a plan for development and operation (...

Ohio Supreme Court rules against municipality in oil and gas case

02/23/2015 The Ohio Supreme Court ruled that the city of Munroe Falls cannot impose local drilling and zoning ordinances that conflict with Ohio state law reg...

Derailed West Virginia oil train carried Bakken crude

02/23/2015

A large-scale cleanup and investigation have launched following the Feb. 16 derailment of a CSX crude oil train near Mount Carbon, W.Va.

BLM decision clears way for first NPRA federal oil production

02/23/2015 The US Bureau of Land Management issued a record of decision (ROD) for the proposed Greater Mooses Tooth One project (GMT1), which cleared the way ...
White Papers

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

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
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