MARKET WATCH: Crude prices slide; gas prices inch up

By OGJ editors
HOUSTON, Nov. 23
-- The front-month crude oil contract in the New York market fell Nov. 20, while the front-month gas contract made slight gains. Analysts at Pritchard Capital Partners said, “Fundamentals remain poor as crude, gasoline, and distillate inventories” are a respective “6%, 5%, and 33% above their 5-year averages.”

They said, “We expect this week’s [US Energy Information Administration] crude inventories report may show a spike in imports given the previous week’s data was impacted by a sharp decline in imports to the Gulf Coast region due to import curtailments stemming from Hurricane Ida. While a weaker than expected inventory report may pressure crude, ultimately we believe the commodity will continue to trade at an inverse relationship to the [US dollar], which we expect to remain weak for the foreseeable future given the low interest rate environment and government stimulus spending.

They added, “Nonetheless, if the euro continues to weaken against the [dollar], as evidenced in the [dollar] rebound late last week, crude may come under pressure.”

Regarding natural gas, Pritchard Capital analysts said, “Despite forecasts calling for cooler weather this week, we believe natural gas may be pressured as temperate weather last week may keep [heating degree days] below their 5-year average of 118 days, and if such is the case we’d expect a build in storage, which has not happened in the last week of November since 2001 (+30 bcf).”

They added, “Recent data indicates the market is becoming more bearish on gas, as short positions outnumber longs by 167,284 contracts. While this may spark a violent short covering, similar what we saw in recent months, if the fundamentals continue to remain this poor we would expect gas prices to decline further, as the E&Ps 2010 production forecast increases simply will not support gas at these levels.”

Energy prices
The December contract for benchmark US light, sweet crudes dropped 74¢ to $76.72/bbl Nov. 20 on NYMEX. The January contract dropped 58¢ to $77.47/bbl. On the US spot market, WTI at Cushing, Okla., was down 74¢ to $76.72/bbl. Heating oil for December delivery declined 2¢ to $1.98/gal on NYMEX. Reformulated blend stock for oxygenate blending (RBOB) for the same month gained 1¢ to $1.98/gal.

The December natural gas contract, however, gained 8¢ to $4.42/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., was down 34¢ to $3.19/MMbtu.

In London, the January IPE contract for North Sea Brent crude lost 44¢ to $77.20/bbl. Gas oil for December fell by $11.75 to $609.25/tonne.

The average price for OPEC’s basket of 12 reference crudes was down 99¢ to $75.78/bbl on Nov. 19.

Related Articles

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

FourPoint Energy to acquire Anadarko basin assets from Chesapeake

07/02/2015 FourPoint Energy LLC, a privately owned Denver company, plans to acquire oil and gas assets from Chesapeake Energy Corp. subsidiaries Chesapeake Ex...

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...

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...

FWS issues Shell letter of authorization on Chukchi Sea lease

07/01/2015 The US Fish & Wildlife Service issued Shell Gulf of Mexico Inc. a letter of authorization (LOA) related to the potential disturbance of polar b...
White Papers

Definitive Guide to Cybersecurity for the Oil & Gas Industry

In the Oil and Gas industry, there is no single adversary and no single threat to the information tech...

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
Available Webcasts

Better Data, Better Analytics, Better Decisions

When Tue, Oct 27, 2015

The Oil & Gas industry has large amounts of data stored in multiple systems which are purpose built for certain tasks. However, good decisions require insights based upon the data in all of these systems. These systems in turn do not talk to each other. So the process of analyzing data, gaining insights, and making decisions is a slow one and often a flawed one. Good decisions require accurate analytics and accurate analytics require superior/sustainable data quality and governance. This webinar focuses on:

  • The importance of data quality and governance
  • How technological advances are making data quality and governance sustainable in order to get the accurate analytics to make solid decisions.

Please join us for this webcast sponsored by Seven Lakes Technologies and Noah Consulting.


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.


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