MARKET WATCH: Crude oil prices rise on supply concerns

Crude oil futures prices rose on the New York and London markets during Feb. 24 trading, which analysts attributed to international political risks and supply reductions in some producing countries combined with a US tightness of petroleum products while refineries conduct seasonal maintenance.

Natural gas prices dropped below $6/MMbtu on the New York market, and traders noted the March futures contract is scheduled to expire Feb. 26. The pending expiration apparently had more influence on gas prices than did forecasts for more cold weather.

Last week, gas prices spiked on weather concerns. Current forecasts call for colder-than-average temperatures across the central and eastern US for 6-10 days and possibly stretching into mid-March.

PIRA Energy Group of New York issued a weekly recap of its analysis of the oil market fundamentals saying ongoing growth of shale continues to dominate both the oil and gas outlooks.

“Even with a slowdown in growth from the recent pace, shale will remain a major contributor to global liquids growth and the US will still face a steady decline in import requirements,” PIRA said. “However, we continue to face increasing violence in Iraq, significant outages in Libya coupled with political turmoil, sanctions and extremely uncertain negotiations with Iran, growing unrest in Venezuela, and an unending war in Syria that could spread violence anywhere in the Middle East.”

PIRA said a rebound of global demand growth in 2013 “confirms our view that reports of the death of demand growth are premature.”

Energy prices

The New York Mercantile Exchange April crude contract rebounded to start the week, climbing 62¢ on Feb. 24 to close at $102.82/bbl. The May contract gained 69¢ to settle at $102.06/bbl.

Heating oil for March delivery was down 1.2¢ to a rounded $3.09/gal. Reformulated gasoline stock for oxygenate blending for March delivery was virtually unchanged to remain at a rounded $2.83/gal.

The March natural gas contract on NYMEX dipped 69¢ to a rounded $5.45/MMbtu. On the US spot market, the gas price at Henry Hub, La. was a rounded $6.28/MMbtu, climbing 7.5¢.

In London, the April ICE contract for Brent crude delivery gained 79¢, closing at $110.64/bbl, setting a high for 2014. The May contract rose 72¢ to 110.20/bbl. The ICE gas oil contract for March climbed $4.50 to $934.25/tonne.

The Organizational of Petroleum Exporting Countries reported its basket of 12 benchmark crudes was $106.70/bbl on Feb. 24, up 2¢.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

US Forest Service withdraws proposed groundwater directive

06/22/2015 The US Forest Service withdrew a proposed directive on groundwater resource management on June 19, and announced it would hold public discussions o...

Williams rejects unsolicited bid from Energy Transfer Equity

06/22/2015 Williams Cos. Inc., Tulsa, has rejected an unsolicited all-equity acquisition proposal valued at $53.1 billion from Dallas-based Energy Transfer Eq...

WPX Energy adds to acreage in Gallup oil play

06/22/2015 WPX Energy Inc., Tulsa, has added to its San Juan Gallup acreage in New Mexico with the purchase of another 14,300 net acres from an undisclosed se...

Lundin appoints president, chief executive officer

06/22/2015 Lundin Petroleum AB reported that its board has appointed Alex Schneiter as president and chief executive officer following Ashley Heppenstall’s de...

MARKET WATCH: NYMEX, Brent crude oil price fall on Greece’s debt concerns

06/22/2015 US crude oil futures for July delivery dropped back below $60/bbl on the New York market in June 19 trading, and analysts said concerns over Greece...

Oil demand picks up

06/22/2015

A decline in global oil demand has been blamed as one of the major reasons for the sharp fall in oil prices since June 2014.

Rosneft, BP sign upstream, downstream agreements

06/19/2015

OAO Rosneft agreed to sell BP PLC a 20% share of Taas-Yuryakh Neftegazodobycha in eastern Siberia for $750 million.

Total sheds stake in German refinery

06/19/2015 OAO Rosneft has completed a deal for the purchase of Total SA’s minority interest in the 11.5 million-tonne/year PCK Raffinerie GMBH refinery, loca...

MARKET WATCH: NYMEX crude oil prices climb back above $60/bbl

06/19/2015 Crude oil futures for July delivery rose modestly on the New York market to settle above $60/bbl in June 18 trading, marking its highest closing pr...
White Papers

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

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
Available Webcasts


OGJ's Midyear Forecast 2015

When 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

When 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



On Demand

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


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

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


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