MARKET WATCH: Crude price increases in mixed market

The front-month crude price was up 1.4% Apr. 29 on the New York futures market, pulled along by an equity market that anticipated the European Central Bank will reduce interest rates at its May 2 meeting while the Federal Reserve Bank won’t raise its rates.

“Domestic rates remain at rock bottom in the US, which means the Fed has less flexibility to act and will presumably underline, highlight, and draw stars around its statement that it definitely, definitely won't be raising rates anytime soon,” said analysts in the Houston office of Raymond James & Associates Inc. “Equities surged in anticipation of this latest monetary ‘fix,’ with the Standard & Poor’s 500 Index climbing 0.7%. Oil futures also benefitted from the likely stimulus plans and were also supported by the grim prospect of US military action in Syria, which remains, at least hypothetically, on the table.”

They said, “Natural gas also roared ahead, with front-month futures rising 5.6%.”

North Sea Brent, however, was “a bit of a laggard.” Marc Ground at Standard New York Securities Inc., the Standard Bank Group, said the spread between Brent and West Texas Intermediate “narrowed to close at $9.31/bbl, its lowest closing level since January of last year.”

Ground said, “The upward [crude price] impetus was not due to any apparent good news on the demand front, with US data flow out yesterday (personal income and spending, and manufacturing activity) all coming in well below market expectations. US growth momentum has definitely slowed since February.”

He remains concerned about US crude and gasoline inventories. “Both the level of current gasoline stocks and in terms of days of supply are still above their 5-year averages,” Ground observed. “This could imply a limit on the extent to which refineries will drawdown crude oil stocks to bolster gasoline inventories.”

Energy prices

The June contract for benchmark US sweet, light crudes rebound $1.50 to$94.50/bbl Apr. 29 on the New York Mercantile Exchange. The July contract took back $1.47 to $94.72/bbl. On the US spot market, WTI at Cushing, Okla., followed the front-month futures contract, up $1.50 to $94.50/bbl.

Heating oil for May delivery slipped 0.05¢ but closed essentially unchanged at a rounded $2.90/gal on NYMEX. Reformulated stock for oxygenate blending for the same month declined 0.74¢ but also closed virtually unchanged at a rounded $2.83/gal.

The new front-month June natural gas contract jumped 16.9¢ to $4.39/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., escalated 16¢ to $4.27/MMbtu.

In London, the July IPE contract for North Sea Brent increased 65¢ to $103.81/bbl. Gas oil for May dropped $1.25 to $857.50//tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes gained 21¢ to $100.91/bbl.

 

Contact Sam Fletcher at samf@ogjonline.com

Related Articles

MARKET WATCH: Oil prices continue falling awaiting economic statistics

12/16/2014 Oil prices on the New York market dropped in Dec. 15 trading following reports of supply disruptions in Libya and awaiting reports of economic stat...

MARKET WATCH: OPEC basket price closes below $59/bbl

12/15/2014 The average crude oil basket price for the 12 members of the Organization of Petroleum Exporting Counties closed below $59/bbl on Dec. 12 while cru...

TAEP: TPI still peaking, but ‘contraction unavoidable’ as oil prices fall

12/12/2014 The Texas Petro Index (TPI), a composite index based on a comprehensive group of upstream economic indicators released by the Texas Alliance of Ene...

MARKET WATCH: NYMEX crude oil price extends slump

12/12/2014 Crude oil prices extended their slump on the New York market with a Dec. 11 settlement of less than $60/bbl for January, and prices continued downw...

US needs more data before ending crude export ban, House panel told

12/11/2014 Much more environmental impact information is needed before the US can reasonably remove crude oil export limits, a witness told a House Energy and...

Rosneft, Essar sign terms of oil supply agreement

12/11/2014 OAO Rosneft and Essar Energy PLC have signed key terms of an oil supply agreement in New Delhi. Rosneft said shipments to India may begin in 2015.

Barton introduces bill to remove US crude export limits

12/11/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

MARKET WATCH: NYMEX crude oil price slides below $61/bbl

12/11/2014 Crude oil prices fell below $61/bbl for January delivery on the New York market Dec. 10 after the Organization of Petroleum Exporting Countries low...

MARKET WATCH: US crude oil prices rebound modestly awaiting inventory report

12/10/2014 Crude oil prices rose modestly on the New York market Dec. 9 while analysts awaited the US government weekly inventory report on crude oil and prod...

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