MARKET WATCH: January gas contract tops $6/MMbtu

Sam Fletcher
OGJ Senior Writer

HOUSTON, Dec. 29 -- The January natural gas contract—due to expire at the close of today’s trading session—inched above $6/MMbtu in intraday trading Dec. 28 on the New York market.

The front-month crude contract topped $79/bbl in intraday trading, up 1% “as the dollar's rally stalled and weather conditions helped demand for heating fuels,” said analysts in the Houston office of Raymond James & Associates Inc. “Both heating oil and gasoline's January futures contracts posted gains,” they said, adding, “The National Weather Service's 8-14 day outlook is forecasting colder-than-normal conditions across the eastern half of the country, which should continue to provide upward support for prices.”

Meanwhile, the Standard & Poor's/Case-Shiller home price index gained 0.4% to a seasonally adjusted reading of 145.36 in October—its fifth consecutive monthly increase.

In other news, Raymond James analysts cited an article from The Australian quoting claims by Toreador Resources Corp. officials that the Paris basin “could be another Williston basin in the making,” potentially yielding 65 billion bbl of shale oil through application of hydraulic fracturing technology that has proved so successful in the US. Toreador has secured the rights to drill 750,000 acres in the basin that stretches across France and that has produced small amounts of oil via conventional methods. “Come to think of it, the Eiffel Tower looks a lot like an oil rig,” said Raymond James analysts. Veterans of the annual Offshore Technology Conference in Houston may recall several years ago an OTC exhibitor sold samples of some of the first oil produced from beneath Paris in the late 20th century—in glass containers in the shape of the Eiffel Tower.

Energy prices
The February contract for benchmark US sweet, light crudes traded as high as $79.12/bbl Dec. 28 on the New York Mercantile Exchange before closing at $78.77/bbl, up 72¢ for the day. The March contract gained 79¢ to $79.45/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., climbed $1.72 to $78.77/bbl, back in step with the closing price for the front-month futures market contract. Heating oil for January delivery rose 3.79¢ to $2.07/gal on NYMEX. Reformulated blend stock for oxygenate blending for the same month was up 2.88¢ to $2.02/gal.

The January contract for natural gas jumped 34.7¢ to close at $5.99/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., advanced 10¢ to $5.88/MMbtu.

In London, the February IPE contract for North Sea Brent gained $1.01 to $77.32/bbl. Gas oil for January was up $20.75 to $627.75/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes increased to $74.83/bbl on Dec. 28 from a revised Dec. 24 price of $74.33/bbl.

Contact Sam Fletcher at samf@ogjonline.com.

Related Articles

PACE survey finds 69% support for crude exports to trading partners

02/11/2015 More than two thirds of registered voters responding in a nationwide telephone survey commissioned by Producers for American Crude Exports (PACE) s...

EIA: US gasoline prices to average $1/gal less in 2015 vs. 2014

02/10/2015 US regular gasoline retail prices are expected to average $2.33/gal in 2015, down from $3.36/gal in 2014, according to the Energy Information Admin...

MARKET WATCH: NYMEX oil prices rise on revised OPEC forecast

02/10/2015 Crude oil prices climbed more than $1/bbl on Feb. 9 to settle above $52/bbl, marking a third consecutive trading session that ended with higher pri...

MARKET WATCH: NYMEX oil prices settle above $51/bbl

02/09/2015 Crude oil prices rose on the New York market Feb. 6 to settle above $51/bbl after the Baker Hughes Inc. weekly rig count showed a decline of 87 rig...

Statoil reduces capital budget by $2 billion following 4Q losses

02/06/2015 Statoil ASA has reduced its organic capital expenditure to $18 billion in 2015 from $20 billion in 2014. The move comes on the heels of a fourth qu...

PwC: Low oil prices might drive surge in restructuring in 2015

02/06/2015 Mergers and acquisitions (M&A) in the oil and gas industry hit 10-year highs in terms of deal value and volume in 2014, according to a report f...

MARKET WATCH: NYMEX oil price bounces back up somewhat

02/06/2015 Crude oil prices on the New York market bounced up $2/bbl to settle slightly above $50/bbl Feb. 5. The positive momentum continued during early Jan...

Oil-price collapse may aggravate producing nations’ other problems

02/05/2015 The recent global crude-oil price plunge could be aggravating underlying problems in Mexico, Colombia, and other Western Hemisphere producing natio...

MARKET WATCH: NYMEX oil drops, ending 4-day rally

02/05/2015 Crude oil prices dropped on the New York market Feb. 4 to settle below $50/bbl and to end a 4-day rally after a weekly government report showed oil...
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