J. Marshall Adkins of Raymond James & Associates in Houston forecast that the government next week will report an 88 bcf gas injection for the week ending Oct. 16.
“We continue to stand by our view that the market is structurally oversupplied and will continue to require aggressive coal-to-gas switching throughout the remainder of 2015, incentivized by low gas prices, to avoid closing in on maximum storage capacity,” Adkins said in an Oct. 16 research note.
“As such, we expect natural gas prices to remain depressed through the end of the year,” he added.
Energy prices
The November crude oil contract on the New York Mercantile Exchange dropped 26¢ to $46.38/bbl on Oct. 15 while the December crude oil contract was down 29¢ to $46.87/bbl.
The natural gas contract for November declined by 6.5¢ to a rounded $2.45/MMbtu. The Henry Hub, La., gas price was up 5¢ to $2.49/MMbtu.
Heating oil for November delivery was up less than a penny to a rounded $1.49/gal. The price for reformulated gasoline stock for oxygenates blending for November was down less a fraction of a penny to remain at a rounded $1.31/gal.
The November ICE contract for Brent crude dropped 44¢ to $48.71/bbl, and the December contract rose 4¢ to $49.73/bbl. ICE gas oil for November settled at $449.50/tonne, down $4.25.
The average price for the OPEC basket of 12 benchmark crudes was $45.05 on Oct. 15, down 16¢.
Contact Paula Dittrick at [email protected].
*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.