MARKET WATCH: Crude prices continue to climb; gas to fall

Crude prices kept climbing with the front-month contract up 0.8% Nov. 30 in the New York market while natural gas continued to drop, down 7.8¢ in that session, as budget negotiations remained deadlocked in Washington, DC.

US economic data also “was not particularly encouraging,” said Marc Ground at Standard New York Securities Inc., the Standard Bank Group. “Personal income for October was flat, while spending fell 0.2% month-over-month. The Chicago Purchasing Managers Index managed to creep above 50, although at 50.4 this was hardly inspiring and even fell short of the market’s modest expectations (consensus: 50.5).”

Ground said, “Looking at the latest US Commodities Futures Trading Commission data after the ceasefire between Israel and Hamas, the brief increase in net speculative length that we saw off the back of the tensions in the previous week was dramatically reversed this past week. A considerable 47.3 million bbl were liquidated, the largest decline since May of this year.”

In Houston, analysts with Raymond James & Associates Inc. said, “One thing the [Democrat and Republican] parties can agree on is further sanctions on Iran, with the Senate unanimously approving additional financial penalties for foreign businesses and banks linked to the regime,”

In other news, Raymond James analysts said, “Greek government bond yields reached the lowest level since March today—a mere 14.6%—after a $13 billion repurchase, part of yet another bailout package agreed to by Euro-zone ministers last week. Things are indeed looking up in Athens.”

Despite a 50% drop in the number of rigs drilling for gas in the last 12 months, US gas supplies remain “resilient.” In the latest monthly data from the Energy Information Administration, gross natural gas withdrawals in the Lower 48 totaled 73.05 bcfd—“a new record for US supply,” said Raymond James analysts. “Onshore supply came out to 69.4 bcfd, marking sequential growth of 400 MMcfd and a year-over-year increase of 3.2 bcfd. Not surprisingly, the large majority of this year-over-year growth continues to be generated from the ‘other states’ (namely, the Marcellus) while some minor growth out of Texas is serving to offset the decline in Louisiana.” They continue to project more than 1.5 bcfd of gas supply growth in 2013.

Energy prices

The January contract for benchmark US light, sweet crudes gained 84¢ to $88.91/bbl Nov. 30 on the New York Mercantile Exchange. The February contract advanced 83¢ to $89.49/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up 84¢ to $88.91/bbl.

The expiring December contract for heating oil inched up 0.07¢ but closed essentially unchanged at a rounded $3.04/gal on NYMEX. Reformulated stock for oxygenate blending for the same month declined 2.56¢ to $2.76/gal.

The January natural gas contract dropped 8.7¢ to $3.56/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., fell 15.7¢ to $3.48/MMbtu.

In London, the January IPE contract for North Sea Brent increased 47¢ to $111.23/bbl. Gas oil for December rose $1.50 to $950.25/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes was up $1.13 to $108.59/bbl. So far this year, OPEC’s basket has averaged $109.70/bbl, compared with $107.46/bbl for all of 2011.

Contact Sam Fletcher at samf@ogjonline.com.

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

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

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
Available Webcasts


Driving Growth and Efficiency with Deep Insights into Operational Data

When 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



On Demand

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


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

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