Crude oil prices on the New York market jumped by more than $2/bbl Feb. 12 to settle above $51/bbl, which analysts attributed to more oil and gas companies cutting their budgets as well as an announced ceasefire agreement between Russia separatists and Ukrainian forces.
Blaming low world oil prices for a fourth-quarter writedown of $6.5 billion, Total SA said it will cut investments and employees this year as well as accelerate its asset divestitures (OGJ Online, Feb. 12, 2015). Total executives told reporters they are preparing the company for an extended period of low oil prices.
US shale producer Apache Corp. also announced plans to cut expenditures and its rig count in response to volatile oil prices (OGJ Online, Feb. 12, 2015).
MarketWatch, a Dow Jones subsidiary, reported oil prices have settled higher or lower by more than 2% for 10 consecutive days, the longest streak of this kind since a 21-day period from Dec. 4, 2008, to Jan. 5, 2009.
The leaders of Germany, France, Russia, and Ukraine announced a ceasefire agreement following 16 hr of talks. The new ceasefire arrangement is set to begin Feb. 15 in eastern Ukraine.
Russian President Vladimir Putin shook hands with Ukrainian President Petro Poroshenko in a highly publicized event in the Belarusian capital of Minsk.
Energy prices
The New York Mercantile Exchange March crude oil contract jumped $2.37 to $51.21/bbl Feb. 12. The April contract climbed by $2.38 to $52.16/bbl.
The natural gas contract on NYMEX for March declined 8¢ to a rounded $2.71/MMbtu. The Henry Hub, La., gas price was $2.87/MMbtu, up 2¢.
Heating oil for March gained nearly 10¢ to a rounded $1.91/gal. Reformulated gasoline stock for oxygenate blending for March delivery was up 5¢ to a rounded $1.59/gal.
The March ICE contract for Brent crude oil jumped $2.39, settling at $57.05/bbl. The April contract escalated $3.36 to $59.28/bbl. The ICE gas oil contract for March climbed $18.25 to $562.50/tonne.
The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes on Feb. 12 was $52.86/bbl, up 65¢ from Feb. 11.
Contact Paula Dittrick at [email protected].
*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.
