MARKET WATCH: Stock and oil prices rise after budget agreement

Major US stock indexes jumped in early trading Jan. 2 after the US House of Representatives finally passed a budget bill in a late-night session on New Year’s day when the country technically went over the long-feared fiscal cliff as automatic tax increases and spending cuts kicked in.

Oil prices followed the equity market higher in early trading, but natural gas futures continued to slump. “Stock futures rallied on news of the deal. But today's celebration could turn sour next month when Congress will be asked to raise the debt ceiling,” said analysts in the Houston office of Raymond James & Associates Inc.

Meanwhile, US Coast Guard officials reported a concial drilling unit that ran aground in a storm off Alaska appeared to be stable with no indication that any of its 143,000 gal of diesel fuel and 12,000 gal of combined lube oil and hydraulic fluid was leaking (OGJ Online, Jan. 2, 2013). The 266-ft Kulluk drilling unit had been working in the Beaufort Sea off Alaska’s North Slope and was being towed to its winter home in Seattle when it encountered a severe storm with 24-ft waves on New Year’s Eve. It was reported tug crews were forced by the storm to cut loose the barge, which then drifted 10 hr before grounding off uninhabited Sitkalidak Island 200 miles south of Anchorage.

The double-hull Kulluk was built in 1983 by Japan’s Mitsui & Co. Ltd. and is a veteran of Alaska drilling. It underwent $292 million in improvements before resuming work last year in the Beaufort Sea.

Even USCG classifies the mishap as a maritime transportation accident. But that didn’t stop Rep. Ed Markey of Massachusetts, top-ranking Democrat on the House Natural Resources Committee, from saying it confirms his claim drilling expansion “could prove disastrous for this sensitive environment.” Markey has long opposed oil and gas exploration and development in Alaska. He now also opposes US exports of natural gas exports, claiming US residents and industries shouldn’t be deprived of that energy resource.

Energy prices

The February contract for benchmark US light, sweet crudes rose $1.02 to $91.82/bbl Dec. 31 on the New York Mercantile Exchange. The March contract gained 97¢ to $92.27/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up $1.02 to $91.82/bbl.

The expiring heating oil contract for December delivery inched up 0.03¢ to $3.05/gal on NYMEX. Reformulated stock for oxygenate blending for the same month increased 1.21¢ to $2.82/gal.

The February natural gas contract fell 11.8¢ to $3.55/MMbtu on NYMEX. On the US spot market, however, gas at Henry Hub, La., gained 0.1¢ but closed essentially unchanged at a rounded $3.40/MMbtu.

In London, the February IPE contract for North Sea Brent advanced 49¢ to $111.11/bbl. Gas oil for January dropped $6 to $927/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes declined 8¢ to $107.79/bbl. OPEC’s basket price averaged $109.45/bbl through 2012, compared with an average $107.46/bbl in 2011.

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

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