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

Devon Canada files with AER for Walleye oil sands project

09/05/2014

Devon Canada Corp. has submitted applications with Canada’s Alberta Energy Regulator for its Walleye steam-assisted gravity drainage project.

Noble, Nepco sign gas supply deal for Leviathan production

09/04/2014 Noble Energy Inc., Houston, reported signing a nonbinding letter of intent (LOI) to supply natural gas from Leviathan field offshore Israel to Jord...

Nova Scotia prohibits hydraulic fracturing

09/04/2014

The government of Nova Scotia has imposed an indefinite ban on hydraulic fracturing onshore.

Statoil shuts down production from Huldra platform

09/03/2014 Statoil ASA has permanently shut down production from its Huldra field platform on PL051/052 in the North Sea. The platform’s production lifespan o...

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