MARKET WATCH: Gas price rises, but crude increase was 'underwhelming'

The February crude contract posted an “underwhelming” gain Jan. 10 in the New York futures market against a background of encouraging economic indicators, analysts said. Natural gas climbed 2.6%, however, and corporate energy stocks improved with the SIG Oil Exploration & Production Index up 1.2% and the Oil Service Index gaining 1.3%.

“Things are looking up in China too, with exports surging 14.1% last month, indicating that an uptick in Chinese oil demand may be on deck,” said analysts in the Houston office of Raymond James & Associates Inc. “The more optimistic outlook on global growth weighed on the US dollar yesterday, which is also positive for crude.” As for the crude contract’s unimpressive performance, they said, “Perhaps the market figured out what we've been saying all along: a lot more supply needs to go offline for the global oil market to reach a balance.”

The euro surged against the dollar after Mario Draghi, president of the European Central Bank, announced interest rates for the Euro-zone will remain unchanged.

However, Marc Ground at Standard New York Securities Inc., reported commodity markets were “rattled” in early trading Jan. 11 by a stronger-than-expected increase in Chinese consumer inflation, which rose 2.5% in December from the year-ago level. That’s “well up from the 2% pace seen in November and above the 2.3% consensus,” he said.

Energy prices

The February contract for benchmark US light, sweet crudes climbed 72¢ to $93.82/bbl Jan. 10 on the New York Mercantile Exchange. The March contract increased 71¢ to $94.27/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up 72¢ to $93.82/bbl.

Heating oil for February delivery lost 1.56¢ to $3.05/gal on NYMEX. Reformulated stock for oxygenate blending for the same month recovered 1.44¢ to $2.79/gal.

The February natural gas contract rebound 8¢ to $3.19/MMbtu on NYMEX. On the US spot market, however, gas at Henry Hub, La., dropped 4.6¢ to $3.07/MMbtu.

In London, the February IPE contract for North Sea Brent was up 13¢ to $111.89/bbl. Gas oil for January was unchanged at $948.50/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes increased 29¢ to $109.30/bbl.

Contact Sam Fletcher at samf@ogjonline.com.

Related Articles

Obama makes Alaska’s Bristol Bay off-limits for oil, gas activity

12/17/2014 US President Barack Obama placed Bristol Bay off-limits for future oil and gas leasing, extending a temporary withdrawal he imposed in 2010 that wa...

Severance tax would backfire, Pennsylvania association leaders warn

12/17/2014 Enacting a severance tax aimed at Pennsylvania’s unconventional natural gas activity would substantially harm the commonwealth beyond the industry ...

New York state moves to ban hydraulic fracturing

12/17/2014 High-volume hydraulic fracturing will be banned in the state of New York, Gov. Andrew Cuomo’s administration announced Dec. 17, citing health risks...

Cooper to buy 50% of offshore Gippsland Sole gas field

12/17/2014 Cooper Energy Ltd., Adelaide, has bought a 50% interest in the offshore Gippsland Sole dry gas field in retention lease Vic/RL3 as well as 50% of t...

MARKET WATCH: Oil prices held steady on NYMEX awaiting crude inventory

12/17/2014 Oil prices held fairly steady on the New York market in Dec. 16 trading while Brent crude oil prices fell by more than $1/bbl on the London market....

BPC report examines 40 possible options to reform RFS

12/16/2014 The Bipartisan Policy Center issued a report outlining 40 possible options for reforming the federal Renewable Fuels Standard in an effort to move ...

Turkish refinery secures Canadian financing

12/16/2014 Export Development Canada (EDC) said it is participating as lead arranger in the $3.3 billion debt-financing consortium supporting STAR Rafineri AS...

Encana to focus spending on four core shale assets in 2015

12/16/2014 Encana Corp., Calgary, reported plans to spend $2.7-2.9 billion on its capital budget with roughly 80% of this total directed towards four of what ...

Cenovus trims budget, slows oil sands work

12/16/2014 Cenovus Energy Inc., Calgary, is trimming its capital spending in response to declining crude oil prices and will slow development of some of its t...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


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