MARKET WATCH: Oil prices continue climbing; gas price falls

Oil prices continued climbing Dec. 19 with crude up 1.8% in New York and 1.3% in London on a bullish inventory report, but natural gas fell 2%, wiping out its gain from the previous session.

The equity market ended a 2-day rally with the Dow Jones Industrial Average down 0.8% after President Barack Obama threatened to veto House Speaker John Boehner’s “Plan B” back up proposal for a budget settlement. The Republican-controlled House planned to vote on Boehner’s proposal Dec. 20.

Meanwhile, stock and energy prices were up in early trading after the National Association of Realtors reported US sales of existing homes rose 5.9% to a seasonally adjusted annual rate of 5.04 million in November, the highest level in 3 years. Officials credited the increase to a better job market and record low mortgage rates.

 

US inventory drops

The Energy Information Administration said commercial US crude inventories dropped 1 million bbl to 371.6 million bbl in the week ended Dec. 14, less than Wall Street’s consensus for a 1.8 million bbl draw. Gasoline stocks climbed 2.2 million bbl to 219.3 million bbl in the same period despite an increase in blending components. Analysts were expecting a 2 million bbl gain in gasoline. Distillate fuel inventories fell 1.1 million bbl to 117 million bbl, opposite the market’s outlook for a 1 million bbl boost (OGJ Online, Dec. 19, 2012).

Analysts with Raymond James & Associates Inc. in Houston noted the total tally of crude, gasoline, and distillate fuel inventories last week was below Wall Street’s expectations because of the unexpected drop in distillates. “Small declines in jet fuel and residual fuel oils were outweighed by an increase in unfinished oils,” they said.

Marc Ground at Standard New York Securities Inc., the Standard Bank Group, said the 1.1% increase in refinery utilization last week put it as the highest level since August.

EIA subsequently reported the withdrawal of 82 bcf of natural gas from US underground storage in the week ended Dec. 14, surpassing Wall Street’s expectation of a 76 bcf draw. That left working gas in storage at 3.724 tcf, which is 66 bcf more than the comparable period in 2011 and 345 bcf above the 5-year average.

 

Energy prices

The January and February contracts for benchmark US sweet, light crudes were up $1.58 each to $89.51/bbl and $89.98/bbl, respectively, Dec. 19 on the New York Mercantile Exchange. On the US spot market, West Texas Intermediate at Cushing, Okla., matched the front-month futures contract’s increase to $89.51/bbl.

Heating oil for January delivery gained 3.91¢ to $3.04/gal on NYMEX. Reformulated stock for oxygenate blending for the same month climbed 5.22¢ to $2.74/gal.

The January natural gas contract fell 9.8¢ to $3.32/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., dropped 2.7¢ to $3.26/MMbtu.

In London, the February IPE contract for North Sea Brent rose $1.52 to $110.36/bbl. Gas oil for January was up $8.75 to 937/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes increased 72¢ to $107.10/bbl.

Contact Sam Fletcher at samf@ogjonline.com

 

Related Articles

Aussie, Timor-Leste regulators terminate Timor Gap permit

07/17/2015 Regulators in Australia and Timor-Leste have now formally terminated Timor Gap production-sharing contract JPDA 06-103, which leaves Australian com...

Nexen pipeline leaks 5,000 cu m of emulsion in Alberta

07/17/2015 Alberta Energy Regulator (AER) reported that a Nexen Energy ULC pipeline has leaked 5,000 cu m of emulsion—a mixture of bitumen, produced water, an...

MARKET WATCH: NYMEX crude oil prices drops below $51/bbl

07/17/2015 Light, sweet crude oil prices for August delivery dropped modestly to settle at just under $51/bbl on the New York July 16, but Brent crude oil Aug...

API: US petroleum demand rose in June, second quarter

07/16/2015 Total US petroleum deliveries, a measure of demand, increased 4.2% from June 2014 to average 19.6 million b/d last month. In the second quarter, de...

ConocoPhillips plans further capex reduction for deepwater exploration

07/16/2015 ConocoPhillips reported plans to further reduce its capital expenditures for deepwater exploration, with the “most significant reductions” coming f...

DOE official: LNG exports could be limited by silt-clogged waterways, ports

07/16/2015 Silt, which is increasingly filling US waterways and ports, potentially could limit US LNG exports if it is not dredged soon, a top US Department o...

Fitch notes increase in energy-default rate

07/16/2015 Recent actions of two exploration and production companies have pushed the trailing 12-month energy default rate among issuers of high-yield bonds ...

ENOC trims Turkmen plan in Dragon takeover

07/16/2015 Emirates National Oil Co. Ltd. (ENOC), Dubai, will lower target oil production from the Cheleken area offshore Turkmenistan after acquiring full co...

KMI to buy Shell’s stake in Elba LNG project for $630 million

07/16/2015 Kinder Morgan Inc., Houston, has reached a deal with Royal Dutch Shell PLC to purchase 100% of Shell’s equity interest in Elba Liquefaction Co. LLC...
White Papers

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

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
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