MARKET WATCH: Oil futures price falls to $42.07/bbl

OGJ editors
HOUSTON, Dec. 10 -- Crude oil prices on the New York Mercantile Exchange slipped to just above $42/bbl on Dec. 10 on the release of a short-term outlook by the US Energy Information Administration.

EIA said it expects global oil consumption will decline by 50,000 b/d in 2008 and by 450,000 b/d in 2009. Last month, EIA forecast global consumption would increase by 100,000 b/d in 2008 and remain flat in 2009.

EIA calculates current total world oil consumption at 85-86 million b/d. The agency also revised its oil price forecast downward to average $51/bbl in 2009. That compared with an EIA November oil price forecast of $63.50/bbl average for 2009.

US inventories
EIA also reported Dec. 10 that commercial US crude inventories increased by 400,000 bbl to 320.8 million bbl in the week ended Dec. 5. Gasoline inventories increased by 3.8 million bbl to 202.7 million bbl in the same period. Distillate fuel inventories increased by 5.6 million bbl to 130.6 million bbl. Propane and propylene inventories increased last week by 800,000 bbl to 61.1 million bbl.

Imports of crude into the US increased by 500,000 b/d the week ended Dec. 5 to reach 10 million b/d. Over the last 4 weeks, oil imports have averaged 10.1 million b/d, 109,000 b/d above the same 4-week period last year.

The input of crude into US refineries was up 387,000 b/d to 15 million b/d, with units operating at 87.4% of capacity. Gasoline production rose to 9 million b/d, while distillate production increased as well, averaging 4.7 million b/d.

Energy prices
The January contract for benchmark US light, sweet crudes declined $1.64 to $42.07/bbl. The February contract dropped by $1.70 to $44.66/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was down $1.64 to $42.07/bbl.

Heating oil for January delivery dropped 5.35¢ to $1.44/gal on NYMEX. The January contract for reformulated blend stock for oxygenate blending (RBOB) lost 2.54¢ to 93.64¢/gal.

Natural gas for the same month rose 1.3¢ to $5.579/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., gained 3.5¢ to $5.70/MMbtu.

In London, the January IPE contract for North Sea Brent crude was down $1.89 to $41.53/bbl. The December gas oil contract was down $4.50 to $441.25/tonne.

The average price for the Organization of Petroleum Exporting Countries' basket of 13 reference crudes gained 65¢ on Dec. 9 to close at $38.19/bbl.

Related Articles

PHMSA issues state pipeline excavation damage prevention programs rule

07/14/2015 The US Pipeline and Hazardous Materials Safety Administration issued a final rule to establish the process for evaluating state excavation damage p...

Halliburton, Baker Hughes agree to extend DOJ review of planned merger

07/13/2015 Halliburton Co. and Baker Hughes Inc. reached a timing agreement with the US Department of Justice’s Antitrust Division to extend DOJ’s review of H...

EIA’s estimates for state crude oil production to be helped by direct survey

07/13/2015 Understanding how crude oil production in US key states has been affected by recent changes in crude oil prices and drilling activity is of great i...

Russia’s Rosneft inks deal for stake in Indian refinery

07/13/2015 OAO Rosneft has entered a preliminary agreement to purchase as much as 49% interest in Essar Energy PLC subsidiary Essar Oil Ltd., including its 20...

MPLX, MarkWest to merge in $15.8 billion deal

07/13/2015 MPLX LP, a Findlay, Ohio-based master limited partnership (MLP) formed by Marathon Petroleum Corp. in 2012, and Denver-based MarkWest Energy Partne...

EPP completes acquisition of EFS Midstream

07/13/2015 Enterprise Products Partners LP (EPP) said it has completed the purchase of EFS Midstream LLC from Pioneer Natural Resources Co. and Reliance Holdi...

BLM proposes updates to its oil, gas measurement requirements

07/13/2015 The US Bureau of Land Management proposed regulations to ensure more accurate measurement, accountability, and royalty payments for oil and gas pro...

MARKET WATCH: NYMEX crude oil prices down slightly pending Iran talk results

07/13/2015 US light, sweet crude oil prices settled down slightly July 10 on the New York market, ending a week in which the front-month contract saw its bigg...

PHMSA proposes pipeline accident notification regulations

07/13/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations.
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

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
Available Webcasts

Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors


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