MARKET WATCH: Weather raises crude oil, natural gas prices

Sam Fletcher
OGJ Senior Writer

HOUSTON, July 21 -- With a tropical storm developing in the Caribbean, the expiring August contract for crude oil increased 1.2% July 20 in the New York market, with natural gas up 1.8% in its first increase in three sessions.

Anuj Sharma, research analyst at Pritchard Capital Partners LLC in Houston, said, “The National Hurricane Center is projecting that the weather system in the Caribbean has a 60% chance of becoming a tropical cyclone” that might threaten oil and gas production in the Gulf of Mexico. He said, “Crude got some support from the equities market as well, which rose after the Commerce Department reported an increase in the building permits.”

Forecasts that a heat wave will broil the US East Coast later this week also gave gas prices a boost. In addition, the Wall Street consensus is for a report July 22 of another below-average injection of gas into US underground storage, Sharma said.

US inventories
The Energy Information Administration said July 21 commercial US crude inventories increased 400,000 bbl to 353.5 million bbl in the week ended July 16, counter to Wall Street’s consensus for a drop of 1.2 million bbl. Gasoline stocks climbed 1.1 million bbl to 222.2 million bbl in that same week, exceeding traders’ expectations of a 700,000 bbl increase. Distillate fuel inventories jumped by 3.9 million bbl to 166.6 million bbl, surpassing market forecasts for a 1.5 million bbl build.

The American Petroleum Institute earlier reported a 241,000 bbl decline in crude stocks to 353.3 million bbl, with gasoline inventories down 412,000 bbl to 221.4 million bbl, and distillate fuel stocks registering the only increase, up 979,000 bbl to 161.9 million bbl.

Imports of crude into the US increased that week by 696,000 b/d to 10 million b/d. Over the 4 weeks through July 16, US crude imports averaged 9.5 million b/d, up by 203,000 b/d from the comparable 4-week period in 2009.

The input of crude into US refineries increased only 48,000 b/d to 15.5 million b/d last week, however, with units operating at 91.5% of capacity. Gasoline production declined to 9.3 million b/d; Distillate fuel production increased to 4.5 million b/d.

Energy prices
The expiring August contract for benchmark US light, sweet crudes gained 90¢ to $77.44/bbl July 20 on the New York Mercantile Exchange. The new front-month September contract advanced 68¢ to $77.58/bbl.

On the US spot market, West Texas Intermediate at Cushing, Okla., was up 90¢ to $77.44/bbl. Heating oil for August delivery inched up 0.77¢ but remained virtually unchanged at a rounded $2.02/gal on NYMEX. Reformulated blend stock for oxygenate blending for the same month increased 1.96¢ to $2.08/gal.

The August gas contract rebounded 8¢ to $4.59/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., gained 4¢ to $4.61/MMbtu.

In London, the September IPE contract for North Sea Brent crude rose 60¢ to $76.22/bbl. Gas oil for August lost $1.50 to $647/tonne.

The average price for the Organization of Petroleum Exporting Countries' basket of 12 reference crudes increased 22¢ to $73.16/bbl.

Contact Sam Fletcher at samf@ogjonline.com.

Related Articles

PHMSA orders Plains All American to keep Illinois pipeline shut down

07/15/2015 The US Pipeline and Hazardous Materials Safety Administration issued a corrective action order directing Plains All American Pipeline LP to keep a ...

Advocates urge US to end its crude export ban in Iran agreement’s wake

07/15/2015 Advocates called for removing the US ban on exports of domestically produced crude oil in the wake of the July 14 international nuclear weapons agr...

Operators seen still able to raise capital

07/15/2015 Oil and gas operators remain able to raise capital despite falling crude oil prices and, for many, deteriorating financial conditions, according to...

MARKET: NYMEX crude oil prices rise following news of Iran deal

07/15/2015 Light, sweet crude oil prices settled higher on the New York market July 14 following overnight news that Iran reached a tentative agreement with i...

WPX Energy to buy privately held RKI E&P in $2.35 billion deal

07/15/2015 WPX Energy Inc. agreed to buy privately held RKI Exploration & Production LLC of Oklahoma City for $2.35 billion in a move intended to help WPX...

US House panel grills PHMSA’s interim chief over pipeline safety delays

07/14/2015 Members of a US House Energy and Commerce subcommittee asked US Pipeline and Hazardous Materials Safety Administration Interim Executive Director S...

Market seen balancing with OPEC at target

07/14/2015 Target-level production of crude oil by members of the Organization of Petroleum Exporting Countries would balance the oil market in 2016, accordin...

MARKET WATCH: Crude oil futures prices settle lower on Iran uncertainty

07/14/2015 Crude oil futures prices alternated between gains and losses in July 13 trading before settling lower on both the New York and London markets on un...

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...
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