MARKET WATCH: Crude price drops; natural gas advances

Sam Fletcher
OGJ Senior Writer

HOUSTON, Apr. 27 -- The price of crude fell 1.4% on Apr. 26, ending a 2-day rally on the New York market, as the US dollar strengthened and stalled negotiations on the resolution of Greece’s debt weakened the euro.

“With Cushing[, Okla., crude] inventories approaching record levels, US crude fell even further into contango and continues to be priced below the less-desirable (from a refining prospective) [North Sea] Brent crude due to forecasts for increased European industrial demand,” said analysts in the Houston office of Raymond James & Associates Inc.

Natural gas, however, continued to advance on evidence of a decline in gas drilling—the first in 17 weeks—in last week’s US rig count report by Baker Hughes Inc. Both crude and gas prices were down in early trading Apr. 27.

Olivier Jakob at Petromatrix, Zug, Switzerland, said, “The contango on West Texas Intermediate continues to widen and is now at levels that will make it harder and harder for passive investors in commodity indices to ignore. Marketers of indices that would potentially suffer from investment outflows in times of contango have been sending research notes calling the return of the wide contango a temporary thing. But combine the wide WTI contango, the reputation run on The Goldman Sachs Group Inc., and the expiry of the public comment period for the Commodity Futures Trading Commission’s proposed energy limits, and this still translates into a passive investment outflow risk for the second half of the year.”

Jakob said, “The widening of the contango on WTI is also contributing to a widening of the gasoline crack, but the reformulated blend stock for oxygenate blending (RBOB) differential to WTI is also helped by the necessity to preserve a certain import economics to Europe as WTI moves to a greater discount to Brent.”

Energy prices
The June contract for benchmark US sweet, light crudes traded as high as $85.63/bbl before closing at $84.20/bbl Apr. 26 on the New York Mercantile Exchange, down 92¢ for the day. The July contract fell 57¢ to $86.47/bbl. On the US spot market, WTI at Cushing was down 22¢ as it again got in step with the front month futures contract’s closing at $84.20/bbl. Heating oil for May delivery declined 1.34¢ to $2.24/gal on NYMEX. RBOB for the same month decreased 1.22¢ to $2.34/gal.

The May natural gas contract inched up 0.5¢ to $4.26/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., gained 11.5¢ to $4.19/MMbtu.

In London, the June IPE contract for Brent crude dropped 42¢ to $86.83/bbl. Gas oil for May increased $1 to $719.50/tonne.

The average price for the Organization of Petroleum Exporting Countries' basket of 12 reference crudes escalated by 90¢ to $83.91/bbl.

Contact Sam Fletcher at samf@ogjonline.com.

Related Articles

Transco seeks FERC approval for New York Bay Expansion project

07/09/2015 Transcontinental Gas Pipe Line Co. LLC (Transco), a wholly owned subsidiary of Williams Partners LP, has filed an application with the US Federal E...

House Oversight panel subpoenas Kerry for Keystone XL documents

07/09/2015 The US House Oversight and Government Reform Committee issued a subpoena to US Sec. of State John F. Kerry for reports, recommendations, letters, a...

MARKET WATCH: NYMEX crude oil prices drop for fifth consecutive trading session

07/09/2015 US light, sweet crude oil prices settled slightly lower on the New York market July 8 for the fifth consecutive trading session, and analysts attri...

Ending crude export ban would help rural US areas, House panel told

07/09/2015 Rural US communities generally have benefited from the nation’s crude oil production renaissance, and potentially could be helped more if restricti...

MOL completes Ithaca Norge acquisition

07/09/2015 MOL Group, Budapest, has completed its acquisition of Ithaca Petroleum Norge from Ithaca Energy Inc. for $60 million plus possible bonuses of up to...

Courts less deferential to regulatory agencies, GMU forum told

07/08/2015 US Supreme Court decisions in the recently completed term suggest that judicial deference to federal regulatory agencies is starting to recede, spe...

AER orders Apache Canada to address integrity of pipeline system

07/08/2015 Alberta Energy Regulator has directed Apache Canada Ltd. to address the integrity of its pipeline management system because of “failure to follow p...

API releases pipeline safety recommended practice

07/08/2015 The American Petroleum Institute released a pipeline safety recommended practice that it developed with engagement from the US Pipeline and Hazardo...

MARKET WATCH: Brent oil prices climb; NYMEX oil price holds below $53/bbl

07/08/2015 US light, sweet crude oil prices settled slightly lower on the New York market July 7 to remain under $53/bbl as Brent crude oil prices gained mode...
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


The Resilient Oilfield in the Internet of Things World

When 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.

register:WEBCAST



On Demand

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

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

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