MARKET WATCH: Crude flat; gas down in sluggish markets

Crude contracts for the next several months were essentially flat in a mixed New York futures market Apr. 23 while natural gas pulled back 0.7%.

“The Brent-West Texas Intermediate spread closed at $11.13/bbl—not too far from the $11.01/bbl closing low recorded last week,” said Marc Ground at Standard New York Securities Inc., the Standard Bank Group.

Meanwhile, the broader equity market suffered “the damaging consequences of inaccurate news reporting” when a “false tweet" caused a brief but rapid selloff “that took the market into negative territory,” said analysts in the Houston office of Raymond James & Associates Inc. “In the end, however, all was well, and the Standard & Poor’s 500 Index closed up 1%.” The Oil Service Index and the SIG Oil Exploration & Production Index followed the broader market higher, up 1% and 0.5%, respectively.

“While investors continued to look for signals from the latest batch of earnings reports, the market found support in optimistic new home sales data,” Raymond James analysts reported.  

However, the  Commerce Department reported Apr. 24 orders for durable goods fell 5.7% in March, the biggest drop in 7 months and down from a 4.3% gain in February. Analysts blamed government spending cuts and weaker foreign markets for making US businesses more cautious.

US inventories

The Energy Information Administration said Apr. 24 commercial US crude inventories increased 900,000 bbl to 388.6 million bbl in the week ended Apr. 19, below Wall Street’s consensus for a 2 million bbl gain. Gasoline stocks fell 3.9 million bbl to 217.8 million bbl in the same period, far exceeding analyst’s expectations of a 600,000 bbl decline. Both finished gasoline inventories and blending components inventories were down. On the other hand, distillate fuel inventories were up 100,000 bbl to 115.3 million bbl, short of the market’s outlook for a 500,000 bbl addition.

Imports of crude into the US increased 133,000 b/d to 7.6 million b/d last week. In the 4 weeks through Apr. 19, US crude imports averaged 7.7 million b/d, down 1.3 million b/d from year-ago levels. Gasoline imports last week averaged 662,000 b/d, and distillate fuel imports averaged 154,000 b/d.

The input of crude into US refineries dropped 586,000 b/d to 14.5 million b/d last week with units operating at 83.5% of capacity. Gasoline production increased to 9 million b/d while distillate fuel production decreased to 4.3 million b/d.

Energy prices

The new front-month June contract for benchmark US light, sweet crudes lost 1¢ to $89.18/bbl Apr. 23 on the New York Mercantile Exchange. The July contract increased 1¢ to $89.46/bbl. Similar increases of 1¢/bbl were posted for the August-September contracts with the October contract up 3¢/bbl. On the US spot market, WTI at Cushing, Okla., was down 1¢ to $89.18/bbl.

Heating oil for May delivery inched up 0.23¢ but closed essentially unchanged at a rounded $2.81/gal on NYMEX. Reformulated stock for oxygenate blending for the same month dropped 5.04¢ to $2.72/gal.

The May natural gas contract declined 2.9¢ to $4.24/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., lost 4¢ to $4.29/MMbtu.

In London, the June IPE contract for North Sea Brent was down 8¢ to $100.31/bbl. Gas oil for May advanced $2.75 to $839.50/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes decreased 23¢ to $97.52/bbl.

Contact Sam Fletcher at samf@ogjonline.com

 

Related Articles

BG’s 2015 budget ‘significantly lower than 2014’

02/03/2015 BG Group plans capital expenditures on a cash basis of $6-7 billion in 2015, a range it says is “significantly lower than 2014” due to “a lower oil...

BP trims capital budget by $4-6 billion

02/03/2015 BP PLC plans an organic capital expenditure of $20 billion in 2015, down from the previous guidance $24-26 billion. Total organic capital expenditu...

IHS sees second-half end of US output surge

02/03/2015

Expectations are moderating about growth of oil production in the US this year.

Anadarko reports 2014 loss, remains upbeat about Wattenberg

02/03/2015 Anadarko Petroleum Corp. announced a 2014 net loss of $1.75 billion, or $3.47/share diluted, including a net loss of $4.05 billion associated with ...

CNOOC cuts capital budget, starts production from Jinzhou 9-3

02/03/2015 CNOOC Ltd. is slashing its capital budget for 2015 by 26-35% to $11.25-12.86 billion compared with last year’s budget. Capital expenditures for exp...

Seven Group buys into Beach Energy

02/03/2015 Media group Seven Group Holdings, Perth, has bought 13.8% of Adelaide-based Beach Energy Ltd. through share purchases fuelling speculation of a pos...

MARKET WATCH: NYMEX crude oil stays positive on lower rig count

02/03/2015 Oil prices on the New York and London markets closed higher Feb. 2 on positive momentum generated by a falling US rig count, suggesting cuts in pro...

Obama’s proposed fiscal 2016 budget recycles oil tax increases

02/02/2015 US President Barack Obama has proposed his federal budget for fiscal 2016 that he said was designed to help a beleaguered middle class take advanta...

Pessimism mounts over UK offshore industry

02/02/2015

Pessimism about the UK offshore oil and gas industry is gaining momentum.

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


Cognitive Solutions for Upstream Oil and Gas

When 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


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


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