In the most recent Short-Term Energy Outlook (STEO), released Apr. 9, the US Energy Information Administration projected that world oil consumption will reach 90 million b/d in 2013 and 91.3 million b/d in 2014, lower by 100,000 b/d and 200,000 b/d, respectively, compared with last month’s STEO.

Oil prices dropped among indications of a weakening economy with front-month crude falling 1.1% Apr. 11, ending a 3-day rally in the New York futures market. However, front-month natural gas futures rose 0.6% after the US Energy Information Administration reported a slightly higher-than-expected withdrawal (OGJ Online, Apr. 11, 2013).

The front-month crude contract continued rising in the New York futures market, up 0.5% Apr. 10 after the Energy Information Administration reported a smaller-than-expected inventory increase “despite a 900,000 bbl build at Cushing, Okla., and a large, unexpected build in gasoline,” said analysts in the Houston office of Raymond James & Associates Inc.

According to the US Energy Information Administration’s latest Short-Term Energy Outlook, the retail price for regular gasoline during the summer driving season is expected to average $3.63/gal.

Oil and gas companies in the US would face higher taxes on multiple fronts if Congress enacted the federal budget proposed Apr. 10 by the administration of President Barack Obama.

Oil prices continued to rally with the front-month crude contract up 1.2% Apr. 9 in the New York futures market despite a weaker dollar. Natural gas continued falling, however, with the front-month futures contract down 1.6%.

Investments in shale plays in the US, which totaled $133.7 billion during 2008-12, highlight a renewed trend toward foreign joint ventures, the US Energy Information Administration reported. JVs by non-US companies accounted for 20% of this total.

Technically recoverable US natural gas resources were a record 2,384 tcf at yearend 2012, 25% (486 tcf) more than the previous record-high assessment 2 years earlier, the Potential Gas Committee reported.

Oil prices turned around Apr. 8, with crude inching up 0.7% to end a 3-day losing streak on the New York market, but the front-month natural gas contract dipped 1% on forecasts of warmer weather in the US Northeast.

Oil prices continued falling Apr. 5 with oil dropping a hefty 5% through last week on the New York market. Natural gas continued to benefit from cold weather forecasts, up 2.5% for the week.

Oil prices continued falling Apr. 4 after the US Department of Labor reported for the third consecutive week an increase in new applications for unemployment benefits. The front-month natural gas contract increased 1.2% in the New York market, however, despite a rather neutral update on US gas inventories.

Energy prices plunged Apr. 3 with both West Texas Intermediate and North Sea Brent registering their biggest losses in dollar terms this year on a bigger-than-expected increase in crude inventories and weaker-than-expected economic indicators.

Crude futures overcame a price slump in early trading Apr. 2 in the New York market and managed modest gains by the close of the session. The natural gas contract, however, fell 1.4% on concerns cold weather will dissipate next week.

An alliance of US and Canadian chemical companies oppose increased natural gas exports and are lobbying against export permitting. Fitch Ratings believes operating margins for these companies might see compression from current robust levels if significant gas exports materialize.