MARKET WATCH: Energy prices retreat from previous session's spike

Crude oil prices retreated July 2, giving back some of the spike from the previous session that resulted from initial euphoria over the European Union’s latest attempt to resolve the debt crisis on that continent.

In Houston, analysts with Raymond James & Associates Inc. said, “The global economic slowdown has reached US factories as manufacturing activity shrank for the first time in almost 3 years. Broader markets shrugged off the poor economic data, paring back early losses to end the trading session flat (with the Dow Jones Industrial Average down 0.1%).”

They reported, “Crude oil futures fell 1.4% [in the New York market] on the negative economic data, while natural gas futures traded flat despite forecasts for hotter weather.” The Oil Service Index ended the day flat while the SIG Oil Exploration & Production Index followed crude, trading down 0.7%.

Marc Ground at Standard New York Securities Inc., the Standard Bank Group, noted EU sanctions against imports of Iranian crude went in effect July 1. “Although this should have been largely discounted by markets before then, there have been some developments that have raised uncertainty. It is reported Iran’s parliament is putting together a bill that calls for the closure of the Strait of Hormuz to all oil tankers carrying crude to countries imposing sanctions on Iran. A fifth of the world’s crude oil passes through this strait.”

Energy prices

The August contract for benchmark US sweet, light crudes lost $1.21 to $83.75/bbl July 2 on the New York Mercantile Exchange. The September contract dropped $1.22to $84.15/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was down $1.21 to $83.75/bbl.

The new front-month August contract for heating oil fell 3.4¢ to $2.68/gal on NYMEX. Reformulated stock for oxygenate blending for the same month declined 0.79¢ to $2.62/gal.

The August natural gas contract remained unchanged at $2.82/MMbtu on NYMEX. On the US spot market, however, gas at Henry Hub, La., gained 1.7¢ to $2.76/MMbtu.

In London, the August IPE contract for North Sea Brent decreased 46¢ to $92.34/bbl. Gas oil for July inched up 50¢ to $849/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes climbed $1.18 to $94.17/bbl.

Contact Sam Fletcher at samf@ogjonline.com.

Related Articles

Work stoppages commence at largest US refinery, three other facilities

02/23/2015 The United Steelworkers union (USW) has launched additional work stoppages at the largest refinery in the US and three other facilities as part of ...

AER sets new seismic monitoring rules for Duvernay in the Fox Creek area

02/23/2015 The Alberta Energy Regulator (AER) announced seismic monitoring and reporting requirements for companies using hydraulic fracturing in the Duvernay...

API: US oil product demand reached highest January level since 2008

02/23/2015 US oil product demand rose 1.5% year-to-year to an average 19.2 million b/d in January, its highest level for the month since 2008, the American Pe...

MARKET WATCH: NYMEX crude oil prices slip on ample oil supply

02/23/2015 US light, sweet crude oil prices for March delivery fell during Feb. 20 trading and settled above $50/bbl on the New York market. Some analysts sug...

EOG Resources’ budget down 40% to $4.9-5.1 billion

02/20/2015 EOG Resources Inc., Houston, plans a capital budget of $4.9-5.1 billion in 2015 including production facilities and midstream expenditures, represe...

DOI proposes Arctic-specific drilling regulations for Alaska OCS

02/20/2015 The US Department of the Interior proposed regulations to ensure that oil and gas exploration on the US Arctic Continental Shelf occur safely and r...

BHI’s rig count reaches 5-year low; forecast projects more losses

02/20/2015 The US drilling rig count fell 48 units—markedly fewer compared with declines in recent weeks—to settle at 1,310 rigs working during the week ended...

Noble Energy’s budget down 40% in 2015

02/20/2015 Noble Energy Inc., Houston, plans to spend $2.9 billion in 2015, representing a 40% reduction from 2014. The company also reported full-year 2014 n...

More pragmatism urged for developing Eastern Mediterranean gas

02/20/2015 Eastern Mediterranean nations should abandon inflated expectations and adopt more realistic approaches to developing their natural gas resources, s...
White Papers

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

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...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

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


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


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