MARKET WATCH: Oil, gas prices continue falling

 Oil and gas prices continued falling June 21 with the new front-front August contract for crude down on the New York futures market.

“Another bout of dollar strength took oil prices down another peg,” said Marc Ground at Standard New York Securities Inc., the Standard Bank Group. “Banking liquidity concerns in China have kept commodities, including oil, on the back-foot.”

However, he noted front-month Brent crude had climbed back above $100/bbl after a brief dip. “A sustained move below this level, in our view, could prompt a supply response from the Organization of Petroleum Exporting Countries,” Ground said. “The market most likely feels the same, which should provide support on dips below this level. The cartel appears comfortable with the $100-105/bbl range, choosing to maintain its production ceiling at 30 million b/d at its last meeting.”

He said, “Having dipped below its 50-day and 100-day moving averages ($93.99/bbl and $94.09/bbl), West Texas Intermediate appears to be trying to regain these levels after avoiding a move below its 200-day moving average at $92.30/bbl earlier this morning.”

In Houston, analysts with Raymond James & Associates Inc. reported front-month crude fell 4% through last week, “exacerbated by weak oil consumption data from China.” Natural gas prices dropped sharply June 20-21 after gaining earlier in the week on warmer weather forecasts but managed to finish up 1% overall. “Expect volatility to remain high as eight Federal Reserve officials' speeches and numerous economic reports are on deck this week,” Raymond James analysts warned.

Federal officials suggested June 19 their quantitative easing program may began to unwind later this year.

 Raymond James reported, “Treasurys sold off rapidly, taking the 10-year yield above 2.5% for the first time since April 2011, while stocks worldwide experienced a similar pullback on fears of the monetary punch bowl being taken away. Overall, the Standard & Poor’s 500 Index fell 2% for the week with energy stocks following suit.” The SIG Oil Exploration & Production Index was down 2% while the Oil Service Index declined 1%. Broader market and crude futures were down in early trading June 24. 

Energy prices

The new front-month August contract for benchmark US light, sweet crudes dropped $1.45 to $93.69/bbl June 21 on the New York Mercantile Exchange. The September contract fell $1.52 to $93.63/bbl. On the US spot market, WTI at Cushing, Okla., was down $1.71 to match the August futures closing of $93.69/bbl.

Heating oil for July delivery declined 2.81¢ to $2.84/gal on NYMEX. Reformulated stock for oxygenate blending for the same month for the same month decreased 2.55¢ to $2.76/gal.

The July natural gas contract lost 10.6¢ to $3.77/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., retreated 3.1¢ to $3.87/MMbtu.

In London, the August IPE contract for North Sea Brent was down $1.24 to $100.91/bbl. Gas oil for July tumbled by $17.25 to $858.50/tonne.

The average price for OPEC’s basket of 12 benchmark crudes was down $1.58 to $99.82/bbl. So far this year OPEC’s basket price has averaged $105.31/bbl.

Contact Sam Fletcher at samf@ogjonline.com

 

Related Articles

MEG Energy cuts capital spending for 2015 to $305 million (Can.) from $1.2 billion

12/18/2014

MEG Energy Corp., Calgary, is reducing its 2015 capital spending plans to $305 million (Can.) from the original budget of $1.2 billion.

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 ...

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....

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...

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...

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