MARKET WATCH: NYMEX oil price closes above $80/bbl

By OGJ editors
HOUSTON, Sept. 27 -- The oil futures price climbed on the New York Mercantile Exchange Sept. 26, settling above $80/bbl after a volatile trading session that ended with a rally.

The price rise came despite a report from the US Energy Information Administration earlier in the day showing an expected gain in crude inventories (OGJ Online, Sept. 26, 2007).

"Oil prices shook off the bearish inventory report and continued their bullish trajectory," said Wayne Andrews, an analyst with of Raymond James & Associates Inc. in Houston.

"Supporting oil prices is news of a tropical depression headed for Mexico," Andrews said. "However, it is expected that the storm will miss the Bay of Campeche where a significant amount of Mexico's oil production is centered."

Mexico's gulf coast was under a storm watch for a tropical depression. The US Hurricane Center was monitoring Tropical Storm Karen in the open Atlantic Ocean.

Karen had maximum sustained winds of near 65 mph with higher gusts as of early Sept. 27. Some weakening was forecast for the next 24 hr, the hurricane center said.

Natural gas activity
The Natural Gas Supply Association issued its winter outlook saying that gas rig activity averaged 10% above year-ago levels.

Gas production in the US Lower 48 is expected to increase to 51.3 bcfd this winter, which would be 1.2% higher than last year's heating season.

The association forecast a record inventory level of 3.45 tcf for the Nov. 1 start of the heating season.

Separately, EIA reported that gas inventories in underground storage increased by 74 bcf to 3.24 tcf for the week ended Sept. 21. The level is well above the 5-year average of 2.97 tcf, EIA said in its weekly report.

Energy prices
The November contract for benchmark US sweet, light crudes rose 77¢ to settle at $80.30/bbl Sept. 26 on NYMEX. The gain for the front-month contract followed a 3-day retreat. The December contract gained 25¢ to $78.86/bbl.

On the US spot market, West Texas Intermediate was down $1.33 to $80.31/bbl. Heating oil for October delivery rose 0.13¢ to $2.1826/gal on NYMEX. The October contract for reformulated blend stock for oxygenate blending fell 1.05¢ to $2.0274/gal.

The October natural gas contract rose 6.3¢ to $6.423/MMbtu on NYMEX. It was the last day of trading for the October contract. On the US spot market, gas at Henry Hub, La., dropped 4¢ to $6.47/MMbtu.

In London, the November IPE contract for North Sea Brent crude dropped 19¢ to $77.43bl.

The average price for the Organization of Petroleum Exporting Countries' basket of 12 reference crudes slipped by 69¢ to $75.11/bbl.

Related Articles

Magellan, PAA form Saddlehorn crude pipeline joint venture

02/27/2015 Magellan Midstream Partners LP and Plains All American Pipeline LP have formed Saddlehorn Pipeline Co., a 50-50 limited liability joint venture, to...

Recent CSIS report outlines main US oil infrastructure challenges

02/27/2015 The US crude oil renaissance has created strong demand for expanded US transportation systems, resulting in five primarily challenges, a recent Cen...

Statoil, Sinochem submit POD for Peregrino Phase II off Brazil

02/27/2015 Statoil ASA and partner Sinochem have submitted a plan of development (POD) for the $3.5-billion Peregrino Phase 2 project to Brazil’s National Age...

PetroChina mulling sale of its stake in Arrow CSG

02/27/2015

PetroChina is reportedly considering selling its half of Arrow Energy’s Queensland coal seam gas (CSG) resources.

Michie named Oil & Gas UK chief executive

02/27/2015

Deirdre Michie has been named chief executive of Oil & Gas UK, replacing Malcolm Webb, who will retire May 31.

MARKET WATCH: NYMEX crude oil prices swing down again

02/27/2015 The contract for US light, sweet crude oil for April delivery plunged by more than $2.80/bbl on the New York market Feb. 26 as volatility sent crud...

Low crude prices pressure Latin American producers, CSIS forum told

02/26/2015 Depressed crude oil prices are putting new pressure on Latin American producing countries to improve terms if they expect to attract outside invest...

Petroleum detected in fish tested after Yellowstone River pipeline spill

02/26/2015 Detectable levels of petroleum were found in tests of fish pulled from the Yellowstone River downstream from a broken petroleum pipeline near Glend...

Suriname bid round draws lackluster response

02/26/2015 The dramatic fall in oil prices is being blamed for the lack of interest shown by international oil companies (IOCs) in the deepwater offshore Suri...
White Papers

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...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When 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



On Demand

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


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

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