Weekly Oil & Gas Highlights Library

A weekly snapshot of current market conditions

The O&G weekly updates are issued on a weekly basis, highlighting news from the previous week’s activities in the oil and gas industry. The purpose of these updates is to provide:

Key oil and gas price indicators for the prior seven days
Oil market highlights
Natural gas highlights
Information about upcoming Deloitte Oil & Gas Events

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April 26 issue:

NYMEX WTI crude futures for June ended the week up buoyed by positive economic indicators and anticipation of the Seaway pipeline reversal.
Last Friday, crude futures got a boost when the UK Office for National Statistics released retail sales figures for March showing a 1.8% increase, the highest rise in over a year, compared to just 0.8% in February.
On Monday, crude futures fell in Asia on bearish fundamentals even as HSBC’s preliminary Purchasing Managers Index (PMI) report showed a slight rise from 48.3 in March to 49.1 according to the data.
Further creating uncertainty was Sarkozy’s poor performance in the first round of Presidential elections. Analysts fear that if Sarkozy is not reelected, his successors may reassess France’s support for the euro-zone rescue package, which could bring the euro-debt crisis back to the fore in the oil futures market.
Futures trended upward Tuesday as the Brent/WTI price spread fell below $15 during trading driven by anticipation of the Seaway pipeline reversal set for May 17. The reversed pipeline should bring 100,000 bbl/d to the Gulf region and help draw down the mounting crude stocks at Cushing, OK.
On Wednesday, EIA reported that crude stocks rose 4 million barrels last week to 373 million barrels. At Cushing stocks rose 600,000 barrels to 41.8 million barrels, just below the record set spring of 2011, as companies position their crude to take advantage of the impending Seaway reversal.
On Thursday, WTI oil futures fell 0.3% on disappointing jobs news from the U.S. Department of Labor. Later in the day, futures prices began rising as the National Association of Realtors announced that pending home purchases were up 4.1% to 101.4, the highest level in two years.
The EIA reported NYMEX crude futures prices closed up $0.22 last week at $103.05. Crude stocks continued recent large builds rising by 4.0 MMbbl to 373 million barrels. Stocks are 9.9 million barrels higher than a year ago.
The average retail gasoline price fell $0.052 last week to $3.87 a gallon. Prices were down $0.009 over last year. Gasoline stocks fell 2.2 MMbbl to 211.7 million barrels, which is up 6.1 MMbbl from the same time last year.
The average retail diesel price fell $0.042 to $4.085 a gallon.
Distillate stocks were down by 3.1 million barrels to 125.9 million barrels and down 20.6 million barrels year on year.
The EIA reported Henry Hub spot prices rose last week by 12 cents to $1.99 per MMBtu after spending the entire week below $2/MMBtu. The NYMEX gas futures price was up 11.7 cents to $2.068 per MMBtu from $1.951 last week. Temperatures were 4.1 degrees above the 30-year average and up 3.7 degrees over last year.
Domestic natural gas production was up slightly by 0.3% driven by an increase in dry gas production. Gas production is up 4.1% year on year. U.S. gas imports from Canada stayed flat, but were down 8.4% from last year. The natural gas rotary rig count rose by 7 rigs to 631. Oil-directed rigs were up by 15 to 1,337.
Working natural gas in storage was up 47 Bcf to 2,548 Bcf, which is 872 Bcf higher than a year ago and 908 (55%) higher than the 5-year average.
Domestic natural gas consumption fell 1.1% percent from the previous week with the power sector falling 5.5%. Demand from the residential/commercial sector was up 1.6% and industrial sector demand was up 1.4%.

April 19 issue:

NYMEX WTI crude futures for June ended down for the week on bearish fundamentals and a poor U.S. jobs report from the U.S. Department of Labor.
Last Friday, crude futures fell in Asia as news that China’s GDP grew by only 8.1% in the first quarter, which was below analyst expectations for 8.3% growth.
On Monday, futures prices surged in mid-day trading after an Enbridge spokesman announced that the company would reverse the flow of the Seaway pipeline around May 17, ahead of its original June 1 deadline.
In Tuesday trading, crude futures rose on news that the International Monetary Fund increased its 2012 economic growth forecast from 3.3% to 3.5%.
On Wednesday, crude futures prices tumbled when the EIA’s data showed that crude oil stocks rose by 3.9 MMbbl last week, well ahead of analyst expectations.
Thursday futures prices fell as the Department of Labor announced that new jobless claims fell by on 2,000 to 386,000 less than analyst expectations.
The EIA reported NYMEX crude futures prices closed at $102.83 last week, which is down $6.83 from last year. Crude stocks rose by 3.9 MMbbl to 369 million barrels. Stocks are 12.1 million barrels higher than a year ago.
The average retail gasoline price fell $0.017 last week to $3.92 a gallon. Prices were up $0.07 over last year. Gasoline stocks fell 3.7 MMbbl to 214 million barrels, which is up 5.9 MMbbl from the same time last year.
The average retail diesel price fell $0.021 rising to $4.127 a gallon.
Distillate stocks were down by 2.9 million barrels to 129 million barrels.
The EIA reported Henry Hub spot prices dropped last week by 3.3 cents (1.7%) to $1.87 per MMBtu. Temperatures approach the 30-year average being only 0.3 degrees warmer.
Domestic natural gas production fell 0.6% last week and is up 5.7% year on year. U.S. gas imports from Canada were up 1.2%, but down 6.7% year on year. The natural gas rotary rig count fell by 23 rigs to 624. Oil-directed rigs were down by 7 to 1,322.
Working natural gas in storage was up 25 Bcf to 2,512 Bcf.
Domestic natural gas consumption fell 4.5% percent from the previous week with the residential/commercial sector falling 17.4% and the industrial sector was down 3.0%, but the power sector was up 7.8%.

April 12 issue:

NYMEX WTI crude futures for May ended the week up largely driven by a drop in stocks of gasoline and distillates as well expectations of further quantitative easing in major OECD economies and a falling dollar.
On Monday, futures prices fell further on news that China’s Consumer Price Index (CPI) had increased to an annualized 3.6% in March. An increase in China’s CPI indicates that China may begin to rein in its recent expansionary policies in order to curb inflation.
Crude futures tumbled in Asian trading on Tuesday as China reported that its balance of trade increased to a surplus of $5.35 billion compared to expectations of a $3.2 billion deficit.
On Wednesday, futures prices climbed higher during the day as the EIA announced that gasoline inventories fell by 4.28 MMbbl last week to 217.6 MMbbl and distillate stocks decreased by 4 MMbbl exceeding analyst expectations.
On Thursday, crude futures continued a second day of gains driven by Bank of Japan (BOJ) Governor, Masaaki Shirakawa, who said that the country would pursue “powerful easing” in order to combat deflation in the Japanese economy.
The Department of Labor’s announcement that new jobless claims rose by 13,000 last week to 380,000 was not enough to dampen the rally in crude futures throughout the day.
The EIA did not report NYMEX crude futures prices for the previous week due to the market closure on Friday. However, crude stocks rose by 2.8 MMbbl to 365.2 million. Stocks are 5.9 million barrels higher than a year ago.
The average retail gasoline price fell $0.002 last week to $3.939 a gallon. Prices were up $0.15 over last year. Gasoline stocks fell 4.3 MMbbl to 217.6 million barrels, which is up 8.0 MMbbl from the same time last year.
The average retail diesel price was up by $0.006 rising to $4.148 a gallon.
Distillate stocks were down by 4.0 million barrels to 131.9 million barrels.
The EIA reported Henry Hub spot prices dropped last week by $0.157 (7.3%) to $1.91 per MMBtu. Prices fell as a result of temperatures averaging 5.7 degrees warmer than the 30-year average and 4.1 degrees warmer than a year ago, which caused a 0.7% decrease in natural gas consumption.
Domestic natural gas production rose 0.1% last week and is up 5.4% year on year. U.S. gas imports from Canada were down 2.7% averaging 5.1 Bcf/d. The natural gas rotary rig count fell by 11 rigs to 647. Oil-directed rigs were up by 11 to 1,329.
Working natural gas in storage was up 8 Bcf to 2,487 Bcf, which is 888 Bcf higher than last year.
Domestic natural gas consumption fell 0.7% percent from the previous week with the residential/commercial sector rising (7.9%) as well as the industrial sector (1.2%), but the power sector posted a 9.9% decline.

April 5 issue:

NYMEX WTI crude futures for May ended down for the week as bearish demand fundamentals weighed heavily on the price and geopolitical tensions stayed quiet during most of the week.
On Friday the Brent/WTI spread widened to over $20 in Asian trading after last Thursday’s sell-off. The potential for a coordinated strategic oil stock release will continue to weigh heavily on futures prices.
Secretary of State Hilary Clinton stated over the weekend that a meeting was being arranged in Istanbul for talks with Iranian negotiators about Iran’s nuclear program, which may indicate an easing of tensions over the short-term.
Crude futures edged higher in Asian trading Monday buoyed by the broader market. However, overall trading volumes were light as the market awaits a dominant trend to emerge.
On Tuesday, futures prices declined on profit taking after a 2% increase in oil prices on Monday. Oil futures tumbled in the afternoon following the release of the minutes from a meeting of the Federal Reserve, which indicated that there was little support for further quantitative easing.
Wednesday, the U.S. Energy Information Agency’s weekly oil stocks report showed a 9 million barrel increase in crude stocks, which is the largest increase in three years.
On Thursday futures prices dropped after Mariano Rajoy, the Prime Minister of Spain, announced that the country is likely to need additional international financial support in order to avoid a default. However, WTI futures prices began to climb as the U.S. Department of Labor announced that new jobless claims fell by 6,000 to 357,000 last week.
EIA reported NYMEX crude futures were down $3.85 last week to $103.02 as crude stocks soared by 9.0 MMbbl to 362.4 million. However, stocks are 4.7 million barrels higher than a year ago.
The average retail gasoline price was up $0.023 last week to $3.941 a gallon. Prices were up $0.25 over last year. Gasoline stocks fell 1.5 MMbbl to 221.9 million barrels, which is up 5.2 MMbbl from the same time last year.
The average retail diesel price was up by $0.005 remaining at $4.14 a gallon.
Distillate stocks were unchanged at 135.9 million barrels.
EIA reported Henry Hub spot prices rose last week by $0.02 to $2.06 per MMBtu. However, on Tuesday and Wednesday of the week, prices were as low as $1.89 per MMBtu. Temperatures averaged 55.1 degrees, 7.7 degrees warmer than the 30-year average and 13.9 degrees warmer than a year ago.
Domestic Natural Gas production fell 0.8% last week and is up 4% year on year. U.S. gas imports from Canada were up 10.6%. The natural gas rotary rig count rose by 6 rigs to 658, the first rise in 11 weeks. Oil-directed rigs were up by 5 to 1,318.
Working natural gas in storage was up 42 Bcf to 2,479 Bcf, which is 845 Bcf higher than last year.
Domestic natural gas consumption rose 3.7% percent from the previous week with the residential/commercial sector rising the most (5.8%) followed by the industrial sector (3.8%) and the power sector (1.4%).

March 29 issue:

NYMEX WTI crude futures for May ended down as market participants have begun to largely stand on the sidelines as the futures price trend remains unclear due to conflicting signals from bearish demand fundamentals, a possible coordinated strategic oil release, and tight global spare capacity.
Last Friday, the International Energy Agency (IEA) announced that there were no plans for an imminent release of strategic oil stockpiles, which removed downside concerns of such an action.
Mid-morning futures prices spiked up 3% to $108.25 per barrel as Reuters reported that Iranian crude exports had fallen by 300,000 bbl/d (14%) from 2.2 MMbbl/d in February to an estimated 1.9 MMbbl/d in March using tanker shipment data.
Monday trading saw futures prices fall in Asian trading on profit taking from Friday’s rally. Asian traders took their cues from bearish demand outlook rather than news of an Iranian export decline. Money managers in the market reduced their net long positions by 4% during the last week according to the Commodities Futures Trading Commission.
Crude futures traded listlessly on Tuesday as trading volume fell to half of Monday’s level in early market trading, ahead of the release of EIA’s weekly oil stocks report. Trading volumes picked up later in the day as traded contracts increased to 350,000.
Wednesday, the market took bearish cues from French Industry Minister Eric Besson, who stated that the U.S. government had proposed releasing oil from the country’s strategic reserves. He stated that France needs to receive a report from the IEA about the state of supplies before a decision is reached.
Also on Wednesday, the U.S. Department of Energy’s Energy Information Agency (EIA) released its weekly oil inventories report, which showed a very large 7.1 MMbbl gain over the past week to 353.4 MMbbl, the highest increase since the summer of 2010.
Thursday, crude futures plunged when French Prime Minister Francois Fillon said that Western governments are moving closer to an agreement about a coordinated release of strategic petroleum reserves. The UK Department of Energy and Climate Change also said that they are studying the issues, but have not yet taken a decision. The WTI futures price broke through the support it has maintained at ~$105 plunging more than $1.80 in an hour of trading.
EIA reported NYMEX crude futures were down $0.19 last week to $106.87 as crude stocks rose 7.1 MMbbl to 353.4 million. However, stocks are 2.3 million barrels lower than a year ago.
The average retail gasoline price was up $0.051 last week to $3.918 a gallon. Prices were up $0.32 over last year. Year on year prices have maintained a fairly consistent 0.30 or more premium over the prior year thus far in 2012. Gasoline stocks fell 6.3 MMbbl to 223.4 million barrels, which is up 6.3 MMbbl from the same time last year.
The average retail diesel price was up by $0.005 remaining at $4.14 a gallon.
Distillate stocks were down 0.7 MMbbl to 135.9 million barrels.
EIA reported Henry Hub spot prices dropped last week by $0.17 to $2.04 per MMBtu as nuclear power plants idled last week came back online. Temperatures were 14.1 degrees warmer than the 30-year average and 8.9 degrees warmer than a year ago.
Domestic Natural Gas production rose 0.2% last week and is up 5% year on year. U.S. gas imports from Canada were up 20%. The natural gas rotary rig count fell by 11 rigs to 652. Oil-directed rigs were up by 4 to 1,313.
Working natural gas in storage rose 57 Bcf to 2,437 Bcf, which is 816 Bcf higher than last year. Overall stored natural gas volumes were 900 Bcf (58.6%) higher than the 5-year average.
Domestic natural gas consumption rose 2.4% percent from the previous week with the residential/commercial sector rising the most (10.4%) followed by the power sector (3.2%) and the industrial sector (1.3%).

March 22 issue:

NYMEX WTI crude futures for May end up for the week on positive economic news out of China and Europe as well as tight global spare capacity <3 MMbbl/d.
Closing out last week in Friday March 16 trading, crude futures continued to rebound from the plunge on false rumors that the U.S. and U.K. had agreed to coordinate a release of crude from the Strategic Petroleum Reserve (SPR).
Crude futures fell ~$2 dollars per barrel on Tuesday as Saudi Arabia’s Ali al-Naimi said that there is no supply shortage on the market and that the country could produce up to 12.5 MMbbl/d in the event of a disruption of supplies from Iran.
On Wednesday, WTI futures rose as China increased domestic diesel and gasoline prices, which is expected to stimulate increased crude purchases by Chinese refiners.
Crude futures fell on Thursday, as preliminary data of China’s manufacturing composite index dropped to 48.1 in March, which is down from 49.6 in February. Later in the day London-based Market-Economics released an estimate of the Eurozone purchasing manager’s index, which showed a declined to 48.7 in March down from 49.6 in February. The news of the declines sent futures prices down 2.6%.
EIA reported NYMEX crude futures were down $0.34 last week to $107.06 as crude stocks fell by 1.2 MMbbl to 346.3 million. Stocks are 6.5 million barrels lower than a year ago.
The average retail gasoline price was up $0.038 last week to $3.867 a gallon. Prices were up $0.31 over last year. Despite the rising prices, gasoline stocks fell by 1.2 MMbbl to 226.9 million barrels, which is up 7.2 MMbbl barrels from the same time last year.
The average retail diesel price was up by $0.02 to $4.14 a gallon.
Distillate stocks were up 1.8 MMbbl to 136.6 million barrels.
The retail price of propane was up $0.001 over the week remaining at $2.87 per gallon.
EIA reported Henry Hub spot prices rose last week by $0.08 to $2.21 per MMBtu as despite warm temperatures as the market rebounded driven by nuclear power plant outages.
Prices hit a low last Friday of $2.01 per MMBtu at the Henry Hub and crossed the $2 per MMbtu threshold at several pricing points.
Temperatures were 8.9 degrees warmer than the 30-year average and 6.6 degrees warmer than a year ago.
Domestic Natural Gas production rose 0.1% last week to 63.8 Bcf up 6.5% year on year. U.S. gas imports from Canada were down 9.7% averaging 4.4 Bcf/d.
The natural gas rotary rig count fell by 7 rigs to 663. Oil-directed rigs were up 21 to 1,317.
Working natural gas in storage fell 11 Bcf to 2,380 Bcf, which is 766 Bcf higher than last year.
Domestic natural gas consumption fell by 9.5 percent from the previous week with the residential/commercial sector falling the most (25%) followed the industrial sector (4.4%). The power sector saw an increase due to a record level of nuclear power plant outages during the week that added an estimated 1 Bcf/d to natural gas demand. Nuclear power outages were about 20,900 MW or 21%.

March 15 issue:

NYMEX WTI crude futures for April trended lower throughout the week as bearish fundamentals dominated the market.
In Friday trading on March 09, WTI crude futures rose on news that China’s rate of inflation slowed in February from 4.5% in January to 3.2%.
Prices fell sharply ahead of the release of the Department of Labor’s employment data before skyrocketing to more than $108 per barrel on news of the addition of 227,000 jobs to the U.S. economy over the past week.
On Monday, crude futures fell sharply in Asian trading on news that China had a $31.5 billion trade deficit in February down from a $27 billion surplus in January.
Tuesday, the U.S. Census Bureau released February retail sales figures showing a 1.1% (~$408 billion) increase over the month, the highest figure in five months.
Wednesday, the International Energy Agency released its monthly Oil Market Report in which the agency maintained its 2012 demand projection at 89.9 million bbl/d. Production from Saudi Arabia is at a three-decade peak of 9.85 MMbbl/d, Libyans supplies are recovering after the civil war earlier in the year growing from 550,000 bbl/d in November to just under 1 MMbbl/d in January.
OPEC’s effective spare capacity is under 3 MMbbl/d at 2.82 MMbbl/d, which matched the spare capacity concerns that drove futures prices to historic highs in 2008.
Thursday the Society for Worldwide Interbank Financial Telecommunication or SWIFT that it was severing its ties with Iranian banks, which not only cuts off Iran from a critical lifeline to oil trading, but also global commerce itself.
However, prices soon plunged as a rumor emerged that unidentified UK officials leaked that the country had agreed to cooperate with the U.S. on a release of oil stocks from the Strategic Petroleum Reserves (SPR).
The Obama administration also stated that India has not made a “significant” reduction in its oil purchases from Iran since the beginning of the year and that if such reduction is not made, the U.S. may be forced to impose sanctions on India as well, which would bar any Indian bank processing payments related to Iranian oil from accessing the U.S. banking system.
EIA reported NYMEX crude futures were up $0.70 to $107.40 on March 9 even as crude stocks rose by 1.75 MMbbl to 347.5 million. Stocks are 3.2 million barrels lower than a year ago.
The average retail gasoline price was up $0.036 for the week to $3.829 a gallon. Prices were up $0.26 over last year. Gasoline stocks fell by 1.4 MMbbl to 228.1 million barrels, which is up 3.1 MMbbl barrels from the same time last year.
The average retail diesel price was up by $0.03 to $4.12 a gallon.
Distillate stocks were down 4.7 MMbbl to 134.8 million barrels. Down 17.8 MMbbl from a year ago.
Residential heating oil was up $0.005 last week to $4.105 per gallon.
The retail price of propane was up $0.001 over the week to $2.87 per gallon.
EIA reported Henry Hub spot prices fell $0.11 last week to $2.13 per MMBtu as warm temperatures persisted across much of the country. Temperatures were 3.7 degrees warmer than the 30-year average and 3.1 degrees warmer than a year ago.
Domestic Natural Gas production fell 0.1% last week up 5.4% year on year. U.S. gas imports from Canada were down 8.0% last week driven by a 46.2% drop in Northeast deliveries. The natural gas rotary rig count fell by 21 rigs to 670. Oil-directed rigs were up 3 to 1,296, 57% higher than a year ago.
Working natural gas in storage fell 64 Bcf to 2,369 Bcf, which is 735 Bcf higher than last year.
Domestic natural gas consumption fell by 13.1 percent from the previous week with the residential/commercial sector falling the most (24.9%) followed the power (4.1%) and industrial (3.7%) sectors.

March 8 issue:

NYMEX WTI crude futures for April fell during the week to close Thursday at $106.58 a barrel as rumors of a Saudi Arabian pipeline explosion last week proved false.
European leaders signed a new austerity pact designed to maintain a strict government deficit limit, approved the second 130 billion euro bailout for Greece, and indicated that the transition from the temporary European Financial Stability Facility (EFSF) to the permanent European Stability Mechanism (ESM) would be accelerated.
Over the weekend, a two-vehicle collision in New Lenox, Illinois damaged line 14/64, a key juncture of Enbridge’s Midwest pipeline network, causing an oil leak and fire. The capacity of line 14/64 is ~3% of total U.S. oil imports.
On Monday, China announced a new GDP growth target of 7.5% down from the 8.0% growth it has targeted for the past 8 years. The news sent crude prices lower as the country is the second largest oil-consuming nation in the world and a major source of demand for many of the world’s other commodities.
Crude futures plummeted during Tuesday trading as new data for fourth quarter growth in Europe showed that the economy of the EU shrank by 0.3% at the end of 2011.
Downside news continued as EIA released its March Short-term Energy Outlook, in which the agency estimated a decline in U.S. 2012 petroleum demand of 0.3% (60,000 bbl/d) compared to an estimate of a modest 0.2% 2012 demand increase last month.
During Wednesday trading, futures prices traded within a narrow band on bearish signals from the American Petroleum Institute (API) that estimated a crude inventory build of 4.6 million barrels.
Crude futures received a boost Wednesday from news that Federal Reserve (Fed) officials are considering new so-called quantitative easing measures. The new discussion is over “sterilized” quantitative easing that would attempt to limit the inflationary effect of additions to the money supply by using the newly minted dollars to purchase long-term Treasury bonds and mortgages, but then tie up the money by borrowing it back for short-term periods at low interest rates.
On Thursday, crude futures prices began to climb again on positive news out of Europe. The German Economy Ministry announced that industrial output rose 1.6% in January after a 2.6% decline in December.
EIA reported NYMEX crude futures fell $3.07 to $106.70 on March 2 even as crude stocks rose by 800,000 barrels to 345.7 million. Stocks are 3.2 million barrels lower than a year ago.
The average retail gasoline price was up $0.07 for the week to $3.793 a gallon. Prices were up $0.27 over last year. Gasoline stocks fell by 400,000 barrels to 229.5 million barrels, which is down 300,000 thousand barrels from the same time last year.
The average retail diesel price was up by $0.04 to $4.09 a gallon, up $0.043 from a year ago.
Distillate stocks were down 1.9 million barrels to 139.5 million barrels. Down 15.7 million barrel from a year ago.
Residential heating oil was down $0.008 last week to $4.100 per gallon, $0.227 higher than a year ago.
The propane futures price were unchanged over the week holding at $2.87 per gallon, which is $0.013 lower than a year ago.
EIA reported Henry Hub spot prices fell $0.20 last week to $2.24 per MMBtu as warmer temperature settled across much of the country and consumption fell and average of 3.2% last week. Temperatures for the week ending March 2, were 2.7 degrees warmer than the 30-year average and 3.0 degrees warmer than a year ago.
Domestic Natural Gas production fell 0.7% last week to 63 Bcf/d up 7.5% year on year. Imports of LNG from Canada also increased 1.9%. The natural gas rotary rig count fell by 19 rigs to 691. Oil-directed rigs were up 28 to 1,293.
Working natural gas in storage fell 80 Bcf to 2,433 Bcf, which is 792 Bcf higher than last year.
Natural Gas consumption was down 3.2% on average. The Residential and Commercial sector led the decline with a 5.4% drop, down 8.72% from last year. The power sector was down 0.7% and the industrial down 2.0%.

March 1 issue:

NYMEX WTI crude futures for April spent most of the week trending down on bearish fundamentals. However, mid-afternoon news on Thursday March, 1 of a pipeline explosion in the troubled city of Awamiyah in Saudi Arabia’s oil-rich eastern region sent prices spiking above $110 a barrel.
Last Friday, futures prices were narrowly confined above $108 per barrel as market traders were concerned about the impact of higher gasoline prices on the economic recovery in the U.S., but saw support for current prices in the tensions between Iran and the West.
Crude futures fell on Monday in early Asian trading as market participants sought to realize profits from last week’s gains.
In Tuesday trading, futures prices tumbled 1.9% to close at $106.55 per barrel as a clouded economic outlook was revealed in recent data.
Wednesday crude futures tried to rally on positive economic news from Asia. Japan’s Ministry of Economy, Trade and Industry reported that industrial output increased 2% in January, the second-straight monthly gain, and above analyst expectations.
On Thursday futures prices skyrocketed on news of a pipeline explosion in the city of Awamiyah in Saudi Arabia’s oil-rich eastern part of the country. WTI futures crossed the $110 per barrel mark before closing at $108.84.
EIA reported NYMEX crude futures climbed $6.53 last week closing at $109.77 a barrel on February 24 even as crude stocks rose by 4.2 million barrels to 344.9 million. Stocks are 1.5 million barrels lower than a year ago.
The average retail gasoline price was up $0.13 for the week to $3.72 a gallon. Prices were up $0.33 over last year. Gasoline stocks fell by 1.6 million barrels to 229.9 million barrels, which is down 4.8 million barrels from the same time last year.
The average retail diesel price was up by $0.09 to $4.05 a gallon, up $0.335 from a year ago.
Residential heating oil was up $0.064 last week to $4.108 per gallon, $0.353 higher than a year ago.
The retail propane price rose half a penny to $2.87 per gallon, which is $0.01 higher than a year ago.
EIA reported Henry Hub spot prices fell $0.16 last week to $2.44 per MMBtu as consumption fell across the board last week. Temperatures for the week ending February 23 were 4.4 degrees warmer than the 30-year average and 1.1 degrees warmer than a year ago.
Domestic Natural Gas production increased 1% last week to 63.7 Bcf/d up 8.6% year on year. Imports of LNG from Canada also increased 5.5% averaging 5.4 Bcf/d, down 1.8% from last year. The natural gas rotary rig count fell by 6 rigs to 710. Oil-directed rigs fell 7 to 1,265.
Working natural gas in storage fell 82 Bcf to 2,513 Bcf, which is 756 Bcf higher than last year.
Natural Gas consumption was down 1.61%, but up 0.2% year on year. The Residential and Commercial sector led the decline with a 2.61% drop, down 13.48% from last year. However, the power sector was down just 0.51%, but up 33.48% from last year.

February 23 issue:

NYMEX WTI crude futures for April surged over the past week, with Thursday afternoon trading sending futures prices skyrocketing above the $108 per barrel mark.
Last Friday, Asian traders pushed WTI crude prices up on news of Thursday’s positive jobs figures out of the U.S.
A strike in Yemen spread from PetroMasila’s block 14 to blocks 10 and 51 halting some 160,000 bbl/d of production.
March WTI futures closed up $0.93 on Friday at $103.24 per barrel up ~4.5% for the week.
Over the weekend, China’s central bank announced a reduction in the reserve requirement for Chinese banks in order to stimulate economic growth.
Iran also sent the price of crude spiking as it announced on Sunday pre-emptive sanctions on the United Kingdom (UK) and France and warned other European nations that they would be similarly cut off unless they signed new long-term contracts ahead of EU oil sanctions on the country set to begin July 1.
Although trading was closed on Monday in New York for President’s Day, overseas trading continued to push futures prices up. March WTI futures rose to a 10-month high at $104.92 per barrels.
During Tuesday trading, NYMEX WTI futures opened higher as futures prices extended their Monday gains on news that EU finance ministers had agreed to the 130 billion euro bailout for Greece.
Mid-day, crude futures rallied over $1 in half an hour to over $106 per barrel as EU finance ministers agreed to the 130 billion euro bailout for Greece.
On Wednesday, A report by Goldman Sachs that OPEC spare capacity is “dangerously low” held prices at recent highs.
Thursday, WTI futures prices plunged briefly as EIA released its crude inventory data for the prior week. EIA reported crude stocks rose by 1.6 million barrels to 340.7 million. Stocks are 6.0 million barrels lower than a year ago.
The average retail gasoline price was up $0.068 for the week to $3.59 per gallon. Gasoline stocks fell by 600,000 barrels to 231.5 million barrels, which is down 6.8 million barrels year on year.
The average retail diesel price was up by $0.017 to $3.960 a gallon, up $0.387 from a year ago.
Residential heating oil was up $0.012 last week to $4.04 per gallon, $0.427 higher than a year ago.
The retail propane price was unchanged still remaining at $2.86 per gallon, which is $0.047 higher than a year ago. Propane stocks dropped 1.6 million barrels to 44.9 million barrels.
Prices surged again in afternoon trading driven by a euro strengthening versus the dollar and a broader market rally. Crude futures skyrocketed $1.55 to close at $107.83 per barrel in New York trading and crossed the $108 per barrel mark in after-hours trading.
EIA reported Henry Hub spot prices increased $0.06 last week to $2.60 per MMBtu as temperatures fell below the 30-year average temperature for the first time since November 2011. Temperatures were 0.3 degrees lower than last year.
Domestic Natural Gas production was relatively unchanged last week with LNG imports from Canada down 11.5%. The natural gas rotary rig count declined by 4 rigs to 716. Oil-directed rigs rose 9 to 1,272.
Working natural gas in storage fell 166 Bcf to 2,595 Bcf, which is 744 Bcf (14%) higher than the 5-year average of 1,851 and 753 Bcf higher than last year.
Natural Gas consumption was down 15.5%, but up 9.7% year on year. The residential and commercial sector led the decline with a 20.27% drop, followed by a 16.8% drop in power-related consumption.

February 16 issue:

NYMEX WTI crude futures for March rose steadily throughout the week to $102.34 in Thrusday mid-day trading as a result of optimism for a second Greek bailout, continuing tensions between Iran and the West, and positive U.S. economic news.
The IEA reduced its estimate for 2012 by 250,000 barrels to 800,000 barrels.
Monday WTI futures traded higher on news that the Greek parliament had approved the debt reduction package in a tumultuous session. The news sent WTI futures prices rising by over $1.50 and above the $100 mark to $100.30 per barrel.
Several shipping companies owning over 100 supertankers announced that they would stop loading oil cargos from Iran.
In late afternoon trading on Monday, a technical glitch in the CME Group’s Globex electronic trading system shutdown electronic trading of crude, heating oil. Some traders blamed a $0.50 rise in the crude price on the outage.
Tuesday futures’ trading was off to a slow start following Moody’s downgrade of six European countries including Spain, Portugal, Italy, Malta, Slovakia, and Slovenia and warnings to Austria, France and the United Kingdom.
On Wednesday, Crude futures also received support when the governor of China’ Central Bank said that the country would continue to buy European government debt and maintained confidence in the currency.
According to EIA’s weekly oil stocks report, U.S. crude inventories fell by 200,000 barrels last week. However, the data also showed that stocks at the critical Cushing, OK oil transit point had increased by 2 MMbbl/d.
The average retail gasoline price was up $0.04 for the week to $3.52 per gallon. Prices were up $0.38 year on year. Gasoline stocks also continued to rise by 400,000 barrels to 232.2 million barrels, which is down 8.9 million barrels year on year.
The average retail diesel price was up by $0.087 to $3.943 a gallon, up $0.41 from a year ago.
Residential heating oil was up $0.06 last week to $4.03 per gallon, $0.44 higher than a year ago.
Thursday, crude futures prices climbed to a seven week high, with Brent climbing even faster as a result of a scramble by competing Asian and European buyers seeking to displace Iranian crude.
Henry Hub spot prices increased $0.05 last week from to $2.54 per MMBtu as temperatures fell across much of the country particularly in the North East.
Domestic Natural Gas production was up by 0.2% last week with LNG imports from Canada up 6.0%, but down 21% year on year.
The natural gas rotary rig count declined by 25 rigs to 720, which is down 21% from last year, while the oil rig count increased by 18 to 1,263 up 57% from last year.
Working natural gas in storage fell 127 Bcf to 2,761 Bcf, which is 817 Bcf higher than last year and 765 above the 5-year average.
Natural Gas consumption rose sharply by 14.3% as a result of cooler temperatures in much of the country with total demand exceeding 100 Bcf Saturday and Sunday with an average demand of 91.7 Bcf during the week. Residential and Commercial demand saw the most dramatic increase rising 24.9%.

February 9 issue:

NYMEX WTI crude futures for March ended up for the week as a result of a falling dollar, a Greek agreement on austerity measures, and continued positive U.S. jobs numbers from the Department of Labor.
Iran’s oil minister, Rostam Qasemi said Saturday that Iran will certainly stop exporting crude to some European countries.
U.S. refiners are entering the maintenance season, which decreases demand, as they perform maintenance operations ahead of the seasonal gasoline demand increases in the spring.
Federal Reserve Chairman Ben Bernanke stated during testimony before the Senate Budget Committee that the 8.3% unemployment figure released by the Department of Commerce last Thursday understates the weakness in U.S. employment. The news was bearish for the dollar, which plummeted ~1.5% from 0.764 to the euro to 0.754. Since oil is priced in dollars, the fall in the dollar provided a ~2% increase to WTI crude futures to $98.74.
Goldman Sachs began closing its March 2012 WTI-Brent positions, which triggered trades selling Brent versus WTI as a result of the widening price spread between the two crudes.
NYMEX WTI prices fell sharply on release of EIA’s weekly petroleum stocks report. EIA reported that stocks rose by 300,000 barrels last week.
Oil demand remained at near 13 year lows according to the report. Despite the bearish report, NYMEX March crude futures closed up 30 cents at $98.71 per barrel.
Thursday, the Prime Minister of Greece, Lucas Papademos, announced that a deal had been reached over government spending cuts required by the EU for the country to receive additional bailout funds. Details of the deal are still being released, but sources said that the government would make cuts and taxes increases totaling some 13 billion euros ($17 billion) between 2013 and 2015, which was nearly twice what had been pledged previously.
OPEC cut its 2012 global oil demand forecast by 120,000 barrel did not put a damper on crude’s surge.
The Department of Labor reported that jobless claims fell by 15,000 last week to 358,000.
EIA reported NYMEX crude futures closed down last week at $97.84 per barrel as crude stocks climbed 0.3 million barrels to 339.2. Stocks are 5.8 million barrels lower than a year ago.
The average retail gasoline price was up $0.043 for the week to $3.42 per gallon. Gasoline stocks also continued to rise by 1.6 million barrels to 231.8 million barrels.
The average retail diesel price was up more than half a penny to $3.856 a gallon, up $0.34 from a year ago.
Residential heating oil was up $0.02 last week to $3.97 per gallon and $0.40 higher than a year ago.
The retail propane price was down more than half a penny to hold steady at $2.86 per gallon, which is $0.03 higher than a year ago.
Henry Hub spot prices rose $0.17 last week from $2.32 per MMBtu to $2.49 as temperatures fell across much of the country. The NYMEX March 2012 futures price also rose 2.8% or 6.6 cents to $2.448 on Wednesday up from $2.382 the prior week.
Domestic Natural Gas production was down by 0.3% to 64 Bcf/d, which is 19.5 Bcf/d higher than a year ago. The natural gas rotary rig count declined by 32 rigs to 745 while the oil rig count increased by 20 to 1,245.
LNG imports increased to 5.5 Bcf up 29.5% year on year.
Working natural gas in storage fell 78 Bcf to 2,888 Bcf, which is 714 Bcf higher than last year.
Natural Gas consumption was up 4.8% as a result of weather-related demand with the residential and commercial sectors leading the rise with an 8.5% demand increase

February 2 issue:

NYMEX WTI crude futures for March ended down for the week, closing at $97.61 per barrel on Wednesday, February 1 after plummeting from highs briefly above $101 per barrel on Tuesday as crude oil market fundamentals reasserted control over geopolitical concerns this week.
Futures prices received a slight boost on news that the U.S. economy grew at 2.8% in the fourth quarter of 2011, slightly below expectations of 3%. Annual U.S. GDP growth during 2011 was 1.7% for the year.
Analysts believe that when the final numbers are reported for 2011, the European economy will have contracted 0.5% during the year.
Iran allowed International Atomic Energy Agency inspectors back in to the country and OPEC Secretary-General Abdalla el-Badri calmed the market by declaring the world oil market “well-supplied” with OPEC producing ~30.6 MMbbl/d.
Negotiations are still ongoing over Greek debt restructure with bondholders currently reported to be considering a 69% reduction in the face value of their holdings and a 3.6% coupon rate on new 30-year notes, down from 4.25% that had been discussed earlier.
25 of 37 EU member countries had agreed to stricter budget measures and that a new 500 billion euro (~$660 billion) European Stability Mechanism would enter force in July earlier than had been thought.
News of Europe’s current unemployment rate of 10.4%, or ~23 million people, with unemployment in Spain at 25% and 50% for people under 25 years old, sent crude prices down.
EIA’s weekly crude inventory stocks report sent prices crashing again on new that stocks rose 4.2 million barrels last week, higher than analyst expectations of a 3 million barrel rise. Demand for finished oil products slumped to 17.7 MMbbl/d, the lowest levels since the turn of the millennium, while stockpiles of gasoline rose 3 million barrels and crude inventories at Cushing increased another 1.5 million barrels.
The average retail gasoline price was up $0.05 for the week to $3.49 per gallon. Prices were up $0.338 year on year. Gasoline stocks were also up by 3.0 million barrels to 230.1 million barrels, which is down 6.1 million barrels year on year.
The average retail diesel edged up slightly by $0.002 holding steady at $3.85 a gallon, up $0.41 from a year ago.
Residential heating oil was up by $0.428 from last week to $3.95 per gallon and $0.43 higher than a year ago.
Propane stocks dropped 1.7 MMbbls to 48.9 million, which is 11.06 million barrels higher than a year ago. The price stayed nearly flat rising by only 1/10th of a penny to hold steady at $2.86 per gallon, which is $0.05 higher than a year ago.
Henry Hub spot prices fell during the week from $2.61 to $2.32 per MMBtu as a result of warmer than average temperatures. The NYMEX March 2012 futures price also fell closing at $2.282 on Wednesday down from $2.769 the prior week.
Domestic Natural Gas production was up slightly by 0.1%. The natural gas rotary rig count declined by 3 rigs to 777 while the oil rig count increased by 2 to 1,225.
LNG imports declined 12.4% last week down 28.35% year on year.
Working natural gas in storage fell 132 Bcf to 2,966 Bcf, which is 586 Bcf higher than last year and 601 higher than the five-year average.
Natural Gas consumption fell 13.6% with demand falling across all major sectors as a result of warmer temperatures. Temperatures were 5.3 degrees warmer than the 30-year average and 9.1 degrees warmer than a year ago.

January 26 issue:

NYMEX WTI futures for March ended Wednesday January 25 trading down $0.24 for the week at $98.46 per barrel after spending most of the week below the $100 per barrel mark.
Oil consumption was down 7.2% year on year and gasoline demand was at an 11-year low, below the 8 MMbbl/d mark.
Worldwide equity markets and the oil markets were holding their breath as Greece entered into debt discussions with private bondholders. Greece needs a deal with bondholders to avoid default when its bonds come due on March 20.
On Monday WTI and Brent futures opened lower as negotiations over Greek debt failed to produce any results over the weekend and continued into this week.
The EU also put in place sanctions against Iran’s central bank (Bank Markazi), immediately bans transfers of petrochemicals-related technology to Iran and petrochemicals exports from Iran to the EU from May 1.
Tuesday saw crude prices give back most of their Mondays gains as the market’s Iran fears began to calm with the realization that the July 1 deadline for Iranian oil sanctions gave the two sides time to negotiate and the despite the recent heated rhetoric, there had been no disruptions in the oil flow.
Wednesday, the market began to surge on EIA’s release of oil inventories data for the previous week. Crude inventories rose by 3.6 million barrels last week to 334.8 MMbbl, about half of API estimation for a 7.3 MMbbl increase.
The Federal Reserve officials announced that the Fed did not intend to raise the federal funds rate at least until 2014 at which time 11 of 17 committee members expected rates to rise. Keeping the rate low was seen as good for maintaining a growth environment in the economy.
The Department of Labor announced earlier in the day that unemployment had fallen to 8.5% last week.
On Thursday, futures surged up above the $100 per barrel mark as the U.S. Department of Commerce reported that orders for 3-year durable goods increased by 3%, which was above analyst expectations of 2%.
The average retail gasoline price was down less than penny last week holding steady at $3.39 per gallon. Prices were $0.28 higher than a year ago. Gasoline stocks fell 400,000 barrels to million barrels at 227.1 million barrels, down 2.9 million barrels year on year.
The average retail diesel price edged slightly downward by $0.006 to also holding steady at $3.85 a gallon, up $0.42 from a year ago.
Residential heating oil was down $0.014 from last week to $3.94 per gallon and $0.46 higher than a year ago.
Propane stocks dropped 2.4 MMbbls to 50.7 million as prices fell by a penny to $2.86 per gallon, which is $0.06 higher than a year ago.
Tuesday night, President Obama delivered the State of the Union address during which he touched on several energy-related issues and embraced and “all-of-the-above” energy strategy. For the third time, the President proposed eliminating tax deductions for the petroleum industry worth some $300 billion.
Recalling his 2010 State of the Union pledge in which President Obama called for the U.S. to get 80% of its energy from clean energy by 2035, the President said that he also wanted to “double down” on clean energy to spur innovation by allowing the development of enough clean energy on public lands to power 3 million homes.
NYMEX February 2012 futures reported by EIA this week rose 25.7 cents per MMBtu to $2.729 per MMBtu on Wednesday. The Henry Hub spot price closed up $0.12cents to $2.61 per MMBtu.
Domestic natural gas production remained flat during the week rising only 0.3%, but was up 8.2% year on year. Canadian LNG imports were down 4.4% over last week a 31% year on year decline. The natural gas rotary rig count fell by 11 rigs to 780 down 14% from last year and oil rigs rose 32 to 1,223 a 53% year on year increase.
Working natural gas in storage fell 192 Bcf to 3,098 Bcf, which is 531 Bcf higher than a year ago and 547 Bcf above the 5-year average.
Natural gas consumption was down 4.3% led again by power burn and residential/commercial demand. Consumption was 9.3% below year ago levels. Temperatures were 1.1 degrees warmer than the 30-year average.

January 19 issue:

NYMEX WTI futures for February ended up slightly during the week at $100.39 per barrel after briefly dropping below the $100 per barrel mark twice.
Friday, European news again pulled crude prices down as S&P announced a downgrade of nine European countries, including France, which sent the Euro sliding to 1.2624 to the dollar.
Trading was suspended on Monday for the holiday, but futures promised to open higher on Tuesday when Saudi Oil Minister Ali Naimi said that the country was seeking to stabilize oil prices at around $100 per barrel.
When New York trading resumed on Tuesday, the market found support for crude prices on positive economic news coming out of China. China’s fourth quarter GDP growth was 8.9%, above the 8.6% forecast by analyst.
Wednesday, President Obama denied a permit to build the Keystone XL pipeline because the State Department did not have enough time to gather the information necessary to determine if the pipeline was in the “national interest”.
On Thursday, EIA’s reported crude stocks for the week declined 3.44 MMbbl/d to 331.2 million barrels on an 0.5% increase in demand to 17.9 MMbbl/d. However, gasoline stocks rose 3.72 MMbbl/d to 227.5 million barrels, the highest level since March 2011.
The average retail gasoline price rose just under a penny last week to $3.39 per gallon.
The average retail diesel price rose by $0.026 to $3.85 a gallon $0.45 higher than a year ago.
Residential heating oil increased $0.02 to $3.95 per gallon and $0.50 higher than a year ago.
Propane stocks dropped 1.1 MMbbls to 53.2 million as prices remained unchanged at $2.87 per gallon, which is $0.08 higher than a year ago.
NYMEX February 2012 futures dropped 30.2 cents per MMBtu closing at $2.472 per MMBtu on Wednesday as a result of storage levels above average, warmer temperatures, and consistent production volumes. The Henry Hub spot price closed down 32 cents to $2.49 per MMBtu.
The natural gas and oil rig counts decreased by 20 to 791 active gas units and oil directed rigs remained unchanged at 1,191.
Working natural gas in storage fell 87 Bcf to 3,290 Bcf, which is 539 higher than a year ago and 566 Bcf higher than the 5-year average.
Natural gas consumption was up 20% ked by power burn and residential/commercial demand.

January 12 issue:

NYMEX WTI futures ended down hovering around $99 per barrel after futures spent most of the past five days above $100 per barrel as it bounced between the bearish fears of the eurodebt crisis and the bullish signals of Iran tensions and the Nigerian strike.
A week ago on Thursday, oil prices climbed in early trading as a result of continuing tensions with Iran and an ongoing general strike in Nigeria over the removal of government fuel subsidies.
The Energy Information Administration’s (EIA) late Thursday report revealed rising stockpiles of oil (up by 2.2 million barrels), gasoline (up by 2.5 million barrels), and distillates (up by 3.2 million barrels). U.S. weekly products supplies were around 18 MMbbl/d at levels rarely seen since 1997 – 98 and 1 MMbbl/d lower than last year. Gasoline demand was around 8.5 MMbbl/d. The news sent WTI prices plunging by over a dollar.
EIA increased its 2012 oil price forecast to $100.25 per barrel in its January Short Term Energy Outlook. EIA projects U.S. GDP growth of 1.8% in 2012 with world GDP growth of 2.9%.
U.S. Treasury Secretary Timothy Geithner met with Chinese Premier Wen Jiabao on Wednesday to secure China’s support for Western-backed oil sanctions against Iran. China is Iran’s largest oil export market purchasing some 500,000 bpd (22%) of Iran’s 2.5 MMbbl/d exports.
On Thursday The U.S. won Japan’s support for sanctions Thursday as Treasury Secretary Timothy Geithner continued his Asian visit.
Futures prices plunged dramatically in mid-afternoon trading on Thursday falling over $2.00 within fifteen minutes until it encountered resistance at the $99 dollar mark as European leaders announced they would postpone implementation of any Iranian oil sanctions for six months in order to provide Greece, Italy, and Spain time to locate alternate sources of supply.
The average retail gasoline price rose more than $0.08 last week to $3.38 per gallon. Prices were $0.29 higher than a year ago.
The average retail diesel price also rose, increasing by $0.045 to $3.83 a gallon, breaking a seven week declining trend.
Residential heating oil increased $0.09 to $3.93 per gallon and $0.11 higher than a year ago.
Propane stocks dropped 0.9 MMbbls to 54.3 million as prices moved up half a penny to $2.87 per gallon, which is almost $0.11 higher than a year ago.
NYMEX February 2012 futures dropped 32.3 cents per MMBtu to close at $2.774 per MMBtu on Wednesday as a result of warmer temperatures, burgeoning stock builds, and consistently upward trending production volumes. The Henry Hub spot price closed down 15 cents to $2.81 per MMBtu.
The natural gas and oil rig counts both increased by 2 to 811 active gas units and 1,191 oil directed rigs.
Working natural gas in storage fell 95 Bcf to 3,377 Bcf, 398 Bcf higher than a year ago.

January 5 issue:

NYMEX WTI futures ended 2011 up by $7.45 or 8.2% at $98.83 per barrel, just shy of the $100 mark. The rise continues a three year rebound since the commodities crash in 2008.
Last Thursday, crude plummeted in mid-day trading following EIA’s announcement that oil inventories declined 3.9 million barrels in stark contrast to the massive build seen over the previous week. Distillate stocks increased as well by 1.2 million barrels. However, gasoline stocks declined by 700,000 barrels.
Crude surged again as the U.S. pentagon issued strong statements in response to Iran’s threat to close the Strait of Hormuz.
Friday end-of-the-year trading was light with volumes only one third the average level of trading. The market found positive support for crude prices as Petroplus, Europe’s largest independent refiner by capacity, announced that it was closing three refineries in Belgium, France, and Switzerland due to a credit freeze.
Over the weekend, President Obama’s signature of the 2012 defense authorization bill that included authorization for Iranian sanctions increased the geopolitical risk factor in the oil market. When trading resumed on Tuesday, NYMEX crude futures began a rapid climb over rising fears of a closure of the Strait of Hormuz.
On Wednesday, news that French and European diplomats said that they had agreed in principle to embargo Iranian oil sent prices spiking up by more than a dollar before collapsing almost as fast as
Oil markets have been shaken in recent weeks by news related to Iran’s nuclear program, which the country claims is for civilian and scientific purposes, but Western governments believe is a cover for a nuclear weapons program.
On January 4, the Henry Hub spot price closed down 11 cents to $3.07 per MMBtu as cold temperatures in the East and mild temperatures in the West held prices within a narrow band during the week.
Consumption increased 2.5% over last week lead by a 3.2% increase in the residential and commercial sector.
Working natural gas in storage fell slightly to 3,472 Bcf, a decline of 106 Bcf over the week.
The natural gas rotary rig count increased by 8 to 809 active units, the first rise in eight weeks. Oil rigs declined by 8 to 1,193.
NYMEX January 2012 futures dropped 0.025 cents to $3.096 per MMBtu from $3.121 per MMBtu on Wednesday.

December 8 issue:

Crude oil prices declined over the past week even as it crisscrossed the $100 per barrel mark several times on anticipation of news from the European debt summit.
On Monday, the U.S. Department of Labor announced that unemployment dropped to 8.6% in November, the first time it has been below the psychologically important 9% threshold since March of 2009 and 1.2% below the same time last year.
Looking at the oil fundamentals, China is expected to begin building stocks over the coming months to provide the supplies needed to support its expansionary fiscal policy while supplies at Cushing are expected to begin tightening when the Seaway pipeline reversal is accomplished.
Over the weekend, Italian Premier Mario Monti announced his government approved a series of austerity measures designed to balance Italy’s government budget by 2013. The measure includes a 2% increase in the VAT tax to 23% as well as increases in the retirement age up to 66 by 2018 and increases the number of years workers must pay their contributions to receive full pension benefits to 42 years for men and 41 years for women.
Standard and Poor’s put 15 of the 17 European nations on a negative credit watch as a result of the continuing economic and political crisis in the Eurozone. The list included 6 triple-A rated countries: Austria, Finland, France, Germany, Luxembourg, and the Netherlands.
EIA reported that crude stocks rose by 1.3 million barrels or 0.4% over the past week, which sent futures prices below $100 per barrel briefly. Oil stocks are currently above the five year average by 4.5 million barrels and he growing build of U.S. gasoline stocks is also a concern.
Gasoline demand is at a 10 year low of 8.5 million barrels a day indicative of the overall sluggish economy.
European debt concerns overshadowed the Department of Labor’s announcement that new jobless benefits claims dropped by 23,000 to their lowest level in nine months.
Average retail gasoline price fell for the third week by $0.02 to $3.29 per gallon, which is $0.33 higher than one year ago. Gasoline stocks rose 5.1 million barrels to 215 million barrels, which is the largest weekly build over the past 10 months and one million barrels higher than a year ago.
The national average retail diesel price fell $0.03 to $3.93, which is $0.73 higher than one year ago.
Residential heating oil also fell by was relatively unchanged at $3.89, but still $0.69 cents higher than a year ago.
The residential propane price inched up under a penny and stayed flat at $2.85 per gallon while propane inventories declined slightly to 59.7 million barrels.
On November 21, the Henry Hub spot price closed down 8 cents to $3.45 per MMBtu on Wednesday.
Gas consumption rose 18.4% during the week even as working natural gas in storage fell to 3,831 Bcf, a decline of 20 Bcf over the week. However, the gas withdrawal was focused on the East Coast while other regions continued to add gas to storage.
The natural gas rotary rig count declined by 9 to 856active units.
Natural gas production was down 1.4% largely as a result of winter production freeze-offs in the Western part of the country, which occur when natural gas flows are blocked as a result of water vapor freezing in the stream.
NYMEX January 2012 futures were down 3.4 cents to $3.180 per MMBtu from $3.55 per MMBtu last Wednesday.

December 1 issue:

NYMEX futures’ breach of the $100 mark on November 17 was short-lived due to fears around the deepening of Eurozone.
Crisis and speculation that the Seaway pipeline reversal will not end the supply glut in Cushing. However, since early this week, futures have been trading close to $100 after a coordinated effort by central banks to infuse liquidity in Europe and heightened political tensions in the Middle East.
EIA reported that crude inventories increased by 3.9 million barrels last week.
Average retail gasoline price dropped marginally by $0.06 to $3.31 per gallon, which is $0.45 higher than one year ago. Gasoline stocks were up 0.2 million barrels to 209.8 million barrels.
The national average retail diesel price fell by a mere $0.05 to $3.96, $0.80 higher than one year ago.
Residential heating oil also fell by $0.04 cents per gallon to $3.90, $0.78 cents above last year’s price.
Residential propane price inched up slightly by $0.005 to $2.85 per gallon while propane inventories rose 0.386 million barrels to 59.77 million barrels, down 5.6 million barrels from a year ago.
Earlier this week, France proposed that the European Union (EU) freeze central bank’s assets and halt oil purchases from Iran, after the U.S., Britain, and Canada announced new sanctions on Iran's energy and financial sectors.
NYMEX January 2012 futures were down 5.8 cents to $3.55 per MMBtu from $3.608 per MMBtu last Wednesday. Working natural gas in storage fell for the first time in this winter heating season to 3,851 per MMBtu as of November 25. However, the stocks are 261 Bcf above the five-year average.
On November 21, the Henry Hub spot price closed $2.94 per MMBtu, falling to less than $3.00 for the first time in two years, due to expectations of reduced demand as a result of moderate temperatures.
Natural gas production increased 1.2%, averaging 65 Bcf per day, which is 9.4% above last year.

November 17 issue:

Over the past week, NYMEX futures struggled to get over the psychologically important $100 per barrel mark, which it finally achieved on Wednesday.
The Italian Senate passed a budget bill setting firm fiscal targets, which markets responded to positively with the interest rate on 10-year Italian government bonds falling below 7% to 6.63% on expectations that Berlusconi may soon step down if the measure is approved by the lower house. There was continued economic optimism that a Mario Monti candidacy for Italian Premiership might succeed Berlusconi and be able to affect a reigning in of government spending.
Wednesday’s news of the reversal of the Seaway pipeline that would send 150,000 barrels/day of oil from Cushing, OK to the Gulf Coast by the second quarter of 2012 pushed futures above the $100 mark. The pipeline would eventually bring 400,000 barrels/day to the Gulf from Cushing where excess supplies have weighed heavily on the WTI price.
EIA announced that crude stock fell by 1.056 million barrels last week.
The average retail gasoline increased $0.01 to $3.44 per gallon, which is $0.54 higher than one year ago. Gasoline stocks were up 1 million barrels to 205.2 million barrels.
The national average retail diesel price gained $0.10 raising the price to $3.99, $0.80 higher than one year ago.
Residential heating oil rose $0.07 cents per gallon to $3.94, which was $0.82 cents above last year’s price.
The residential propane price inched up slightly by $0.007 to $2.83 per gallon while propane inventories fell 0.572 million barrels to 59.62 million barrels, which is down 5.156 million barrels from a year ago.
The Henry Hub spot price dropped $0.44 per MMBtu to $3.11 during the week. NYMEX near-term futures were down 30.8 cents to $3.344 per MMBtu. Working natural gas in storage rose by 19 Bcf to a record 3,850 as of November 11 exerting heavy downward pressure on the futures price.
Residential and Commercial demand dropped by 5.3% while demand from the power sector dropped 1.2% as a result of the mild temperatures reducing overall weather-related demand. The Industrial sector posted a mild rise of 0.4 percent.
The natural gas rotary rig count dropped by 30 to 877 active units. Natural gas production was down 0.5% averaging 63.5 Bcf, which is 8.4% above last year.

November 10 issue:

EIA announced on November 9 that last week’s crude stocks declined 1.4 million barrels to 338.1 million down 0.04% from last week and 7.3% from a year ago. Last Friday’s trading volumes were 30% below their 200-day average even as prices closed up on the day. Trade volumes have been improving after the failure of MF Global last week.
Prices also rose ahead of the IAEA’s report on Iran’s nuclear program. The report, released Wednesday, provided information that Iran worked on nuclear weapons design and expressed “serious concerns”.
Wednesday saw positive economic news out of China as the Central Bank announced that inflation in October was only 5.5%, down from 6.1% in September. China’s General Administration of Customs also released its October crude sales data, which showed that October imports surged 1.7% to 4.92 MMbbl/d (20.8 mmt), which was 26.8% above last October.
The Interest rate on the 10-year Italian bond crept above 7% on Wednesday as Italy is now two trillion dollars in debt and faces a 400 billion deficit next year. Markets declined around 3% on the news as Italy is the 8th largest economy and accounts for 20% of the eurozone’s economic output. France and Germany held discussions about splitting the currency bloc into separate strong and weak states.
The average retail gasoline price dropped $0.028 to $3.424/gallon, which is $0.55 higher than one year ago. Gasoline stocks dropped 2.1 million barrels.
The national average retail diesel price also declined but only by a mere $0.005 with prices holding steady at $3.89, $0.77 higher than one year ago.
Residential heating oil rose $0.03 cents per gallon to $3.88, which was $0.80 cents above last year’s price.
The residential propane price inched up slightly by less than a penny to $2.82 per gallon while propane inventories fell 0.1 million barrels to 60.2 million barrels.
The Henry Hub spot price rose $0.16 per MMBtu to $3.55 during the week. NYMEX near-term futures were down 9.7 cents to $3.652 per MMBtu.
The natural gas rotary rig count dropped by 27 to 907 active units. Natural gas production was up 0.4% overall even as the off lining of the offshore Independence hub for maintenance has reduced gas from the Gulf of Mexico by 0.5 Bcf.
A DOE official announced before the Senate Committee on Energy and Natural Resources that the Department had commissioned a study from EIA on the impact of LNG exports on the U.S. economy.

November 3 issue:

NYMEX futures had a rocky ride over the past week falling on Monday’s Asia open due to the rising U.S. dollar as traders sought to lock in recent gains.
U.S. trading was light on Monday with only 300,000 contracts traded instead of an average of 660,000 as a result of the bankruptcy of MF Global, a top commodities futures trader with $6 billion in exposure to Europe’s sovereign debt crisis.
On Tuesday, the markets were rocked by news that Greek Prime Minister Papandreou threw the European debt deal into doubt with calls for a referendum on the proposal as a result of intense political opposition. By Thursday, it seemed that the government of Papandreou either might collapse or an agreement would be reached to form a caretaker government, which in either case made a referendum unlikely.
The Fed announced no change in its policy in a 9-1 vote. The Fed also lowered its growth forecast to 2.5 – 2.9% for next year, down from 3.3 – 3.7% and expects that unemployment would not fall below 8.5 – 8.7% until 2012.
EIA announced on Thursday that crude stocks rose by 1.8 million barrels last week, which was above analyst expectations. However the rise in crude stocks came amidst a 3.6 million decline in distillate stocks.
Gasoline stocks rose 1.4 million barrels as the average retail gasoline price fell to $3.45, still $0.65 higher than last year.
The national average retail diesel price climbed $0.07 to $3.89 as distillate inventories declined 3.6 million barrels.
Home heating oil rose $0.05 cents to $3.85 per gallon 86 cents above last year’s price and the residential propane price rose 2.5 cents to $2.82 per gallon while propane stocks rose 1.2 million barrels.
President Obama announced on Tuesday that he will make the ultimate decision on the $7 billion 1,700 miles Keystone XL pipeline rather than the State Department.
The Henry Hub spot price declined to $3.39 per MMBtu on November 2 and the December NYMEX futures contract declined 2.6 cents to $3.749 per MMBtu.
Although cooler temperatures across the country gave a boost to prices toward the end of last week, stocks continued to rise with working natural gas in storage increasing 78 Bcf. Current stocks of 3,794 Bcf are 201 Bcf above the five year average.
Average temperatures were 3.7 degrees cooler than last year driving up consumption by 12.6% from last week. Most of the demand came from the residential and commercial sectors with power burn down slightly from last week.
The natural gas rotary rig count increased to 934 active units, up 7 from last week. Domestic production was up a 0.2 percent from last week with Canadian imports of rising 1.6% over last week and 2.3% Year on year.
David Hayes, Deputy Secretary of the Interior, told the Department of Energy’s shale gas panel that Interior will issue disclosure rules for hydraulic fracking on federal lands in the next couple of months. The guidelines will be finalized twelve months after their release. Onshore drilling rule 9 has not been revised since 1982. The new revision will deal with water management and disposal of flowback water.

October 27 issue:

Nymex futures surged through the week with markets responding favorably to positive news about the Greek debt deal and U.S. GDP figures. Prices rebounded robustly following the EU debt agreement that would cut the face value of Greece’s debt in half, which is expected to reduce Greece’s 2020 debt to 120% of GDP.
U.S. crude oil inventories were up 1.4% to 337.6 MMbbl and down 7.8% year on year.
Distillate stocks dropped 2.9% to 145.4 MMbbl 2.8%, down 13.6% from last year’s levels.
The price of regular gasoline fell 1.4 cents to $3.46 per gallon up 65 cents from last year and the national average diesel fuel price rose to $3.83 per gallon, 76 cents higher than last year.
Residential heating oil increased $0.03 per gallon to $3.80, $0.80 above last year’s level.
Propane prices held steady at $2.80 per gallon as propane inventories climbed a modest 0.2 million barrels to 59.1 MMbbl.
The State Department announced on Tuesday that it may miss its year-end deadline for a decision on the 700,000 bbl/d Keystone XL pipeline.
By 2035, Brazil’s anticipated oil production of 4.8 MMbbl/d will account for 14% of total world production and 40% of non-OPEC supply growth over the period.
The Henry Hub spot price rose to $3.65 per MMBtu on October 26 and the December NYMEX futures contract rose modestly by 0.4 cents to $3.590 per MMBtu.
Working natural gas in storage rose following a 92 Bcf injection to 3,716 Bcf, which was 28 Bcf below last year’s level. The natural gas rotary rig count dropped to 927 active units, down 9 from last week. Canadian imports of natural gas dropped 6% averaging 5.4 billion cubic feet per day. LNG imports averaged 767 MMcf/day.
North America’s gas exporting future received a boost with news that British-based BG Group PLC entered into an agreement with Cheniere energy to purchase an estimated $8.2 billion of LNG over 20 years.
Canada’s National Energy Board also granted an export license to the Kitimat LNG Operating General Partnership to export up to 468 Bcf of natural gas a year for 20 years.

October 20 issue:

NYMEX crude futures for November ended lower on Thursday October 20 over concerns of weak demand and continuing uncertainty about the European debt crisis. The Department of Commerce’s retail sales data showed an increase of 1.1% over August, which was higher than expected.
China’s GDP growth slowed to 9.1% in the third quarter below its second quarter growth of 9.5% and first quarter growth of 9.7%. As a result, the People’s Bank of China is not expected to raise interest rates.
U.S. crude oil inventories were down 1.4% to 332.9 MMbbl and down 7.8% year on year. Distillate stocks declined to 149.7 MMbbl, down 2.8%, the largest one week drop since September 19, 2008 and down 11.9% from last year’s levels.
The price of regular gasoline rose to $3.48 per gallon the first rise in five weeks and $0.64 higher than last year. The national average diesel fuel price also increased to $3.80 per gallon, $0.73 per gallon above the price last year.
Residential heating oil increased by $0.09 per gallon to $3.77, which is an $0.80 increase year on year. Propane prices inched up $0.02 per gallon to $2.80.
The Commodity Futures Trading Commission (CFTC) voted 3-2 along party lines to limit trading in over-the-counter (OTC) commodity swaps and exchange traded funds (ETF) by limiting the number of contracts a single firm can hold as part of the new CFTC jurisdiction over the U.S. derivatives market granted under the Dodd-Frank financial overhaul.
Japan’s oil consumption declined 10% from February to March as a result of the Tsunamie with May consumption down one MMbbls from February. However, oil consumption grew 660,000 bbls/d from May to August. Six refineries, or ~30% of Japan’s refining capacity, was shut down in the aftermath of the tsunami. Most are now at pre-tsunami levels with the 145,000 bbl/d refinery at Sendai where there was a major fire still offline.
The Henry Hub spot price rose to $3.58 per MMBtu on October 19 and the near-month (November 2011) futures contract rose to $3.586 per MMBtu.
Working natural gas in storage rose 103 Bcf from last week to 3,624 Bcf. The rapidly growing stocks continued even during a period of warmer temperatures across the country with a national average temperature of 63.1 degrees. However, temperatures dipped in Texas and the Southeast, which resulted in a 2.9% decline in power burn over the week.
The natural gas rotary rig count incrased by only 1 rig to 936 after two weeks of double-digit rises.
Canadian imports of natural gas increased 4.1% averaging 5.6 billion cubic feet per day. LNG imports averaged 641 MMcf/day an increase of 22.2 percent.

October 13 issue:

Crude Futures rallied this week only to give up some of their gains Thursday following the Energy Information Administration’s (EIA) announcement that U.S. oil inventories rose 1.3 million barrels last week, which raised concerns over dampening demand.
The Chinese General Administration of Customs announced that Chinese crude imports declined 300,000 barrels per day (bbls/d) from August. China’s economic growth slowed by an estimated 0.2 percent Quarter-over-Quarter following a slowdown in the growth of exports.
An unplanned outage at Sunoco’s Marcus Hook refinery pushed up the price of reformulated gasoline blendstock by 2.0% or 5.4 cents, but the price of regular gasoline fell to $3.42 per gallon for a fifth straight week of declines.
The national average diesel fuel price also declined falling to $3.72 per gallon, but was $0.66 per gallon above the price last year.
EIA’s Short-Term Energy and Winter Fuels Outlook forecasts OECD oil consumption will decline over 2011-12 while demand growth in emerging economies drive total demand up.
The average 2011 Henry Hub spot price is expected to be $4.15 MMBtu, which is 0.24 per MMBtu lower than last year’s average. However, domestic natural gas production is expected to slow in 2012 leading to price recovery to an average of $4.32 per MMBtu next year.
Non-OPEC liquids production is projected to increase by half a million barrels a day in 2011 and 850,000 barrels a day in 2012. OPEC supplies will decline by only 30,000 barrels as day in 2011 as a result of increased Saudi production totaling 9.9 one million barrels of oil per day (MMbbl/d), an increase of 800,000 barrels per day over second quarter production.
EIA predicts excess capacity of 2.8 MMbbl/d in the last quarter of 2011. However, a faster than predicted rebound in Libyan production will drive excess capacity to 3.5 MMbbl/d in the fourth quarter of 2012.
In its Monthly Oil Market Report, OPEC cut world oil demand estimates by 180,000 bbl/d. World economic growth projections remain unchanged at 3.6 percent for 2011, but were revised downward to 3.7 percent for 2012 down from 4.1 percent in the previous report.
The Henry Hub spot price fell to $3.54 per MMBtu on October 12, but displayed signs of rallying toward the end of the week driven by a growing number of nuclear power plants offline for refueling. Following the largest net injection since June 12, 2009, working natural gas in storage rose 112 billion cubic feet (Bcf) from last week to 3,521 Bcf.
The combination of mild temperatures and rapidly accumulating stocks supports a bearish outlook for this year’s shoulder season market. However, the nuclear power plant refueling seasons could support increased gas demand with around 21 reactors and 20,200 megawatts (MW) offline, 300 MW above last year’s outages. Operating rectors are at around 80 percent of capacity.

October 6 issue:

Oil rose midweek on news that Europe is making strides to control its debt crisis, bullish U.S. supply data and an uptick in U.S. employment figures.
Crude inventories fell 4.7 million barrels, according to the Department of Energy (DOE). Inventories at Cushing, Oklahoma, the delivery point for New York-traded futures, tumbled 831,000 barrels to 30.1 million last week, the lowest level since March 2010, according to the DOE.
Gasoline stockpiles, which expected to increase, fell 1.14 million barrels. U.S. total fuel demand, as measured by products supplied by refiners, averaged 18.9 million barrels over the previous four weeks – 1.3% less than the same time last year.
Domestic oil supply remains robust due to advances in technological prowess and increased deepwater activity in U.S. Gulf of Mexico.
A recent report by the Energy Information Administration (EIA) suggests technological advances in oil and natural gas are reducing the interval from the discovery of commercially recoverable hydrocarbons to production and allowing for smaller discoveries to be economically viable.
The average interval from discovery to production for deepwater fields in 1980s was 11.4 years, 5.9 years in 1990s down to 3.3 years in the 2000s.
89.3 million barrels a day this year and by 1.6 percent to 90.7 million next year, according to the IEA.
Energy stocks in the S&P 500 have retreated 26 percent since April 29, when the stock index peaked and crude oil climbed to the highest level since September 2008. That’s the third-biggest decline among 10 groups, according to Bloomberg.
Natural gas consumption increased this week despite a fall shoulder-season market with mild temperatures present over the past week.
Natural gas prices remain lower than forecasted by analysts due to a combination of supply and demand fundamentals.
With the U.S. economy in the doldrums, domestic industrial production down, and limited LNG capacity to meet export demand in emerging economics, natural gas prices have fallen on the demand side.
While natural gas bulls, point out there has been a recent uptick in industrial production, only electricity generation has shown growth during a time when other sectors remain flat.
The import/export mix has reversed recently, but LNG export capacity is too small for any significant export-led demand to spur natural gas prices right now without U.S. LNG export facilities in place.

September issue 29:

Oil prices rose this week in New York on speculation European governments will contain their sovereign-debt crisis, reversing the biggest quarterly decline since the global financial crisis in 2008.
Macroeconomic concerns have been driving crude prices down overriding current microeconomic factors, such as the tight supply-demand balance.
Renewed Libyan oil exports are expected to add some slack and downward pressure to the market. Bloomberg estimates put Libya’s August production at 45,000 barrels a day.
U.S. Treasury Secretary Timothy Geithner predicted Europe will intensify efforts to contain its debt problems following pressure at the International Monetary Fund meeting in Washington last week.
The U.S. House of Representatives voted on September 23 to require the Environmental Protection Agency (EPA) to review and analyze the economic impact of its upcoming ‘tier 3’ regulations for gasoline.
On September 27, ConocoPhillips announced plans to sell its Trainer refinery in Pennsylvania. The refinery will be permanently shutdown in six months, if it cannot find a suitable buyer. The company cited product imports, weakness in fuel demand, and costly regulatory requirements as the factors guiding the decision. Sunoco has also put its refineries in the East Coast up for sale. The company plans to idle the facility, if it is unable to find a buyer.
Natural prices had a roller-coaster week as the Henry Hub spot price declined slightly before beginning an upward move to $3.92 in response to rising natural gas power demand. However, cooler temperatures across the country and robust supplies reasserted downward pressure on natural gas prices yesterday when it closed at $3.88.
Supply remained relatively unchanged as production inched up just 0.1 percent. As a result, increased demand was met by Canadian and LNG imports, which were up 5.1 percent and 17.8 percent respectively. Analysts expect a bearish shoulder-season market of robust supplies as summer gas-fueled cooling needs decrease before winter heating demand picks up.
The House of Representatives approved the Transparency in Regulatory Analysis of Impacts on the Nation (TRAIN) Act, which requires a closer examination of how the EPA’s stricter smog standards will affect electricity and gas prices, electric reliability and the economy.
In recent weeks, Republicans suggest the economic costs of EPA regulations outweigh the benefits for both smog and cross border emissions and pollution from power plants.

September 22 issue:

Oil prices fell below $80 a barrel in New York for the first time since August in an extremely volatile week of mixed supply and demand signals and gloomy economic news.
Oil prices held gains early in the week on a larger than expected draw on U.S. crude supplies, which fell to their lowest level since January, according to the Department of Energy (DOE).
Reversing gains, oil production increased 13% to 5.75 million barrels a day last week - the highest in eight years and U.S. gasoline stockpiles surged 3.3 million barrels to 214.1 million barrels last week.
China and India together are forecast to consume 31% of the world's energy in 2035, up from 21% in 2008. By 2035, China's projected energy consumption is 68% higher than U.S. energy consumption. Global energy consumption grows 53% between 2008 and 2035, representing an average annual growth rate of 1.6%, according to the EIA.
Economic growth from non Organization for Economic Cooperation and Development (OECD) countries will spur global energy consumption, forecast to increase 53% from 2008 to 2035, according to the EIA’s latest International Energy Outlook (IEO).
Market participants should expect volatile seesawing of prices due to demand uncertainties in the near- to midterm.
Demand from OECD countries is forecast to flatten out due to increased efficiencies in consumption and slower economic growth.
Natural gas demand declined this week on mild autumn temperatures across the country. Natural gas spot prices followed the decline at most market locations across the U.S. as consumption fell this week by 0.7% on reduced air conditioning demand.
Production of natural gas this week was robust, as dry production rose by 1.1%, according to BENTEK. Production remains substantially greater than year-ago levels.
Canadian LNG exports continue to fall, averaging 385 million cubic feet (MMcf) during the report week, which is more than 54% less than the same week last year.
Though imports from Canada increased this week, they too remain below last year’s levels due to robust U.S. domestic production.
The natural gas rotary rig count rose by 20 this week to 912 active units, reversing three consecutive weeks of declines, according to Baker Hughes Incorporated.
Total working gas was 35 billion cubic feet (Bcf) below the 5-year historical range at 3,201 Bcf as of Friday, September 16, 2011, according to EIA estimates. Stocks are now 129 Bcf less than last year at this time.

September 15 issue:

Crude prices seesawed this week with mixed supply and demand signals and poor economic news.
Crude futures jumped early in the week, breaking through the $90 per barrel resistance level as crude inventories took their biggest drop since December.
Storms shut in 61% of output in the Gulf of Mexico and stockpiles fell by 6.7 million barrels, more than twice what analysts had expected, according the Energy Information Administration (EIA).
As the driving season comes to an end, gasoline consumption dropped 1.2% to 8.85 million barrels a day in the week ended Sept. 9, the lowest level since May.
The Organization of the Petroleum Exporting Countries (OPEC) and the IEA both cut their forecasts for global oil demand growth in 2011 and 2012 on continuing global economic woes.
The IEA cut its forecast of global oil demand growth this year by 160,000 bpd to 1.04 million bpd and trimmed its 2012 demand growth estimate by 190,000 bpd to 1.42 million bpd.
Despite lowered forecasts by OPEC and the IEA, Goldman Sachs Group Inc. affirmed its forecast that oil in London will rally to $130 a barrel next year.
While U.S. ethanol production continues to grow, the rate of increase has slowed due to market saturation and lower domestic gasoline consumption.
Consumption of fuel ethanol grew more slowly 23,000 bpd or 2.8% than production during the first five months of 2011. April consumption was 10,000 bpd or 1.2% lower compared with April 2010, the first time a month registered a year-over-year decrease since July 2002.
Mild autumn weather and robust domestic production have contributed to a supply build, outstripping demand.
As the hurricane season draws to a close and temperatures cooled across the country, consumption registered a modest decline of 1.9% over last week.
The shale boom has contributed to a significant increase domestic dry gas production, which is 7.5% above this time last year.
The week’s production gain was further augmented by a 4.0% increase in Canadian imports averaging 5.2 billion cubic feet (Bcf) per day. However, Canadian imports remain 16.8% below year-ago volumes.

September 8 issue:

Midweek oil futures jumped the most in four weeks in New York on the potential for additional production disruptions from storm activity in the Gulf of Mexico.
U.S. crude supplies dropped 3.96 million barrels in the seven days to September 2 as more than half of the oil output in the Gulf of Mexico was shut because of Tropical Storm Lee and imports tumbled to their lowest level since April.
Brent crude prices, the international benchmark, hit a record-high premium to West Texas Intermediate (WTI) of more than $27 a barrel on Wednesday. Civil war has curtailed production of Libya’s light, sweet crude oil, reducing supply to Europe and bolstering Brent prices.
The oil rig count broke its 19th consecutive week of increases, falling by 5 to 1,064, according to Baker Hughes.
The American Petroleum Institute (API) released a report, suggesting that the solution to the nation’s economic woes is a supportive energy policy.
An increase in domestic energy production combined with favorable energy policies could create up to a million jobs, according to the report from API.
Natural gas futures fell this week on a mild seasonal slowdown in electricity demand for cooling. Natural gas production in the Gulf of Mexico remains curtailed due to Tropical Storm Lee – initial upward pressure on prices was overshadowed by the impact of cooler weather.
The Gulf accounts for just 7% of total U.S. natural gas production, down from 17% in 2008 as U.S. output has shifted to areas on land, according to the EIA.
Industry analysts expect downward pressure on the remaining 2011 contracts due to an abrupt end to warm summer weather and additions to storage capacity made during the past several years.
With vast deposits of shale gas and few environmental restrictions to stand in its way, China is aiming to become a world leader in shale gas production.
While only the U.S. has been a significant player in the technology driven arena, China's increasing demand for energy, large amounts of capital and lax environmental regulations could potentially give it a competitive edge.

August 25 issue:

Oil prices climbed this week on lower than expected crude inventories, an uptick in orders for U.S. durable goods and speculation that the Federal Reserve will take additional steps to stimulate a sluggish U.S. economy.
U.S. crude inventories were forecast to gain 1.75 million barrels, but unexpectedly declined 2.21 million barrels as refinery rates matched 2011 highs, according to the Department of Energy.
Oil-directed rigs increased by 11 on the week to 1,066, and have risen for 18 consecutive weeks due to high oil prices, according to Baker Hughes Incorporated.
Libya, home to Africa’s largest oil reserves, cut its production from about 1.6 million to 60,000 barrels per day when a civil war broke out in February.
In an unusual week of extremes from Mother Nature, an earthquake shut down two nuclear plants on the East Coast.
Meanwhile, Hurricane Irene is barreling towards the East Coast. The class 3 storm is likely to reduce consumption of natural gas from South Carolina up to Massachusetts as cooler weather, widespread power outages, and business closings reduce demand for electricity generation.
The U.S. Geological Survey (USGS) published new data this week that shows that the Marcellus Shale region contains about 84 trillion cubic feet (Tcf) of undiscovered, recoverable natural gas, far more than their 2 Tcf projection from nearly a decade ago.
The USGS also estimated there are around 3.4 billion barrels of undiscovered, recoverable natural gas liquids, which captures a premium price over the natural gas.

August 18 issue:

Oil markets continued on a roller coaster ride this week.
Crude opened up strong, hitting its highest level in more than a week on data showing Japan’s economy quickly recovered from the natural disasters in March.
Midweek, crude prices seesawed, up on a steep gasoline drawdown, and down on a build in crude stockpiles due to a drop in refinery utilization and higher imports.
Macroeconomic concerns overshadowed supply-side fundamentals as uncertainties continue over the euro zone debt crisis and slow U.S. economic growth.
These concerns have stoked fears of demand destruction that culminated in the third-largest decline in crude prices this year on Thursday.
Despite a 893,000 barrel drop in crude supplies at Cushing, the lowest since November, the Brent-WTI price spread remains decoupled from its previous parity with $14 a barrel Brent premium.
Weekly count of rigs actively drilling for oil in the U.S. recently surpassed the 1,000 count threshold for oil-targeted rigs.
Canada’s 175.2 billion barrels of proven reserves makes it the world's third-largest after Saudi Arabia and Venezuela. Canada is the only non-OPEC member in the top five for proven oil reserves and has enormous growth potential from its oil sands.
Cooling temperatures across the country pushed natural gas prices down as consumers reduced their air conditioning load.
High temperatures contributed to a significant increase in natural gas use to generate electricity. In fact, of the 25 days since 2005 with the highest estimated use of natural gas to generate power, six occurred between July 20 and August 3 of this year, according to the EIA.
In late July 2011, four Regional Transmission Organizations broke or neared peak day demand records.
In 2010, U.S. natural gas production reached its highest level since 1973 due to technological advances in shale gas production, suggesting increased U.S. natural gas consumption is more than just a trend, but an increasingly important part of country’s fuel mix.
Two-weeks after the New York Times (NYT) published a controversial article, questioning the legitimacy of U.S. shale gas reserves, energy companies and associations countered what the call unsubstantiated claims.
The EIA also responded to the NYT’s article, reaffirming the legitimacy and methodology of its natural gas forecasts. The energy industries rebuttal emphasized that natural gas was cleaner-burning, domestically produced and continues to support thousands of job in parts of the nation that need them most.

August 11 issue:

Oil prices continued to seesaw this week in an extremely volatile market.
The week opened with crude hitting an eight month low in New York after Standard & Poor’s lowered the U.S. credit rating, stoking fears of demand destruction from the world’s largest petroleum consumer.
With supply and demand fundamentals trumping macro fears, Goldman Sachs Group Inc. maintained its 2012 forecast for Brent crude to average $130 a barrel. Merrill Lynch maintained its 2012 average forecast for U.S. crude at $102 a barrel and its forecast for Brent next year at $114.
The Organization of Petroleum Exporting Countries (OPEC) said global demand for oil will continue to increase this year due to demand from China and other emerging markets even if demand falters in the U.S. and Europe.
Iran, holder of the OPEC presidency in 2011, said there should be a “fair price for oil,” hinting that it will take measures to bolster crude prices.
Saudi Arabia is narrowing the gap with Russia, which produces 10.26 MMbbl/d, to become the world's top oil producer.
Natural gas prices fell across the country on cooler weather, a bearish storage report, and weak economic news, for the week ending Wednesday.
Robust domestic natural gas production made up for declines in LNG and Canadian pipeline imports. Higher prices in Europe and Asia have diverted LNG cargoes away from the U.S.
Coal-fired power plant closures are expected to increase in the coming months in response to new clean air standards recently finalized by the Environmental Protection Agency (EPA).
The Cross-State Air Pollution Rule will result in higher costs for utilities and possibly double-digit rate hikes for consumers.
The EPA rule, which aims to improve air quality, has already forced coal facilitates in Georgia, Texas, Ohio, North Carolina and Georgia to retire old units rather than paying for expensive pollution-control equipment.
While coal still makes up about 46% of the U.S.’s total generation of electricity, use in the first quarter is already down to thirty-year lows.
According to the Clean Air Interstate Rule’s measurements the highest levels of toxic air pollution from coal-and oil-fired power plants are in Indiana, Ohio, Pennsylvania, Florida, Kentucky and Maryland.

August 4 issue:

Oil prices fell four consecutive days hitting lows not seen since February on continuing debt woes in Europe, increased U.S. crude inventories and signs of a global economic slowdown.
Bearish supply data from the world's biggest crude consumer was backed by weak macro-indicators as consumer spending stalled in June and U.S. factory manufacturing index hit a two-year low.
While the U.S. managed to hold on to its AAA credit rating, which it has held since 1917, Moody’s rating agency has hinted that downgrades are still possible if congress fails to enact debt reduction measures and the economy weakens.
The U.S. average retail price of regular gasoline advanced for the fifth consecutive week despite a 3.6% drop in demand from a year ago, one of the weakest July readings in nine years, according to the DOE.
Oil rigs have increased for 15 consecutive weeks to 1,025 oil rigs, the highest level reported in the last 24 years for which Baker Hughes has reported data.
Saudi Arabia increased its productions to 9.85 million barrels day (bbl/day), narrowing the gap with Russia, which produces 10.26 million bbl/day, to become the world's top oil producer.
West Texas Intermediate (WTI) typically trades at a premium or parity to Brent, which has captured about a $20 premium over the last 12 months.
Natural gas prices fell across the country this week as temperatures cooled. The exception was in the Northeast, where temperatures near 100 caused significant price spikes during the week.
Overall consumption of natural gas for electric power increased by 12.3% from the previous week with weather about 12% warmer than last year and 29% higher than the 5-year average.
Pipeline imports from Canada increased by 7.0% to help meet increased demand for natural gas during the week, primarily for power generation.
Utilities in 27 states are facing some of toughest clean air standards in a decade, resulting in higher costs for utilities and possibly double-digit rate hikes for consumers.
The Cross-State Air Pollution Rule, which will take effect next year, was recently finalized by the Environmental Protection Agency (EPA) with the goal of improving air quality throughout the eastern half of the U.S.
Generation of electricity by coal in the first quarter is already down to thirty year lows.

July 28 issue:

This week's crude rally leveled off after it was announced that U.S. inventories increased 4 million barrels and debt talks stalled.
Market participants pulled back on fears that a U.S. default would slow demand from the world's largest oil consumer, reversing any upward pressure on oil prices felt from the weakening U.S. dollar.
U.S. crude oil refinery inputs averaged about 15.4 million barrels per day during the week ending July 22, 261 thousand barrels per day below the previous week's average.
Over the last four weeks, crude oil imports have averaged 9.5 million barrels per day, 447 thousand barrels per day below the same four-week period last year.
The national average retail regular gasoline price increased for the fourth week in a row to $3.69 per gallon on July 25, 2011, $0.95 per gallon above a year ago.
Natural gas prices fell this week as the heat wave gripping the country subsided. Average temperatures around 100 degrees Fahrenheit put significant stress on the electric grid.
The Midwest Independent System Operator the PJM Interconnection, New York Independent System Operator and the ISO New England -set or just missed daily demand records during the latter part of last week due to a heat wave affecting over 30 states.
Generation of electricity from coal in the first-quarter of this year is at its lowest level in more than 30 years.
Domestic coal use is likely to continue to fall over the next few years due to various proposed air emissions rules by the U.S. Environmental Protection Agency (EPA).
Utilities will most likely retire older coal plants rather than invest millions in retrofits. Some analysts have predicted that up to 20% of the country's coal-fired electricity generating capacity will be retired this decade, bringing up questions of replacement when around 50 gigawatts are taken off-line.

July 21 issue:

Crude oil prices continued to rally this week after U.S. inventories fell the most in six weeks and EU leaders worked to address the region’s debt crisis.
U.S. crude oil supplies declined 5.2 million barrels to 354.2 million last week, according to the American Petroleum Institute.
Middle Eastern oil demand grew by 2.5 million barrels per day (bbl/d) from 2001 to 2010, roughly the same as all emerging Asian countries except China.
Middle East oil demand accounted for one fourth of world demand growth and expanded by nearly 50% over the decade, second only to China's 94% growth, according to a recent report by the IEA.
A heat wave gripped the country this week driving prices up at market locations across the lower 48 States.
With temperatures hovering around 100 degrees Fahrenheit, pipeline imports from Canada helped to meet additional demand for natural gas for power generation this week.
Japan and China's LNG imports surged to a record in June as demand for the fuel from utilities in both the countries rose, putting upward pressure on spot prices, according to Reuters.
Imports by Japan rose 10.6 % year-on-year in June, marking it a third consecutive month of increases as utilities stepped up imports to make up for the loss of nuclear reactors shut by the March earthquake and tsunami or kept offline due to safety concerns.
China imported a record 1.04 million tonnes of LNG in June as the country prepared for increased summer demand when gas-fired power plants rev up operations

July 14 issue:

This week crude prices remained volatile, seesawing up on bigger-than-expected U.S. crude draw and down as U.S. Federal Reserve Chairman Bernanke said the central bank was not ready to take more monetary easing measures.
While unrest in the Middle East and North Africa have sent crude prices soaring earlier this year, unfavorable economic news in the developed world have kept the New York Mercantile Exchange (NYMEX) prices below the $100 mark recently.
High oil prices widened the U.S. trade gap in May to $50.2 billion, its highest level in nearly three years, as exports fell slightly from April's all-time high, according to a Commerce Department report on Tuesday.
Gasoline prices are rising again even though drivers in the U.S. have bought less gas for four months in a row.
Gasoline prices will not feel any significant downward pressure for some time to come if the U.S. Energy Information Administration's (EIA) forecasts for West Texas Intermediate are correct ($102 per barrel in 2011 and $108 per barrel in 2012).
While world crude oil prices fell after the International Energy Agency (IEA) announced it would release up to 60 million barrels from strategic reserves, by late June and early July price rose above the pre-announcement levels.
World liquid fuels consumption will grow by 1.7 million barrels per day from the second quarter 2011 to the third quarter 2011, while production by countries that are not members of the Organization of the Petroleum Exporting Countries (OPEC) falls by 0.2 million barrels per day, according to EIA forecasts.
EIA expects Saudi Arabia will increase production over the next few months, but a significant part of that increase could be absorbed by growth in Saudi oil use to meet summer demand for electricity.
A heat wave that affected nearly half the country’s population, increased domestic gas consumption by 5.1% over last week and drove prices up this week. The power sector led the increase on an absolute and percentage basis for a gain of 8.5%. Prices followed consumption increasing by several percent at both Henry Hub and NYMEX.
The Environmental Protection Agency (EPA) finalized a rule, which takes effect in 2012, that requires power plants in 27 states and the District of Columbia to cut power plant emissions that cross state lines and contribute to ground-level ozone and fine particle pollution in other states.
The Henry Hub price increased a modest 9 cents per million Btu (MMBtu) over the week to close at $4.43 per MMBtu on July 13. At the NYMEX, the price response was more robust, up 4.4%, with the August 2011 natural gas contract price gaining ground over the week, closing at $4.40 per MMBtu on Wednesday.
Natural gas consumption will increase by 2.0% to 67.4 billion cubic feet per day (Bcf/d) in 2011, according to forecasts by the EIA. Industrial and electric power consumption is expected to rise in 2011 by 3.3% and 2.1% respectively. Projected total consumption drops slightly in 2012 to 67.3 Bcf/d due to growth in the industrial and electric power sectors.
Growing domestic natural gas production has reduced reliance on natural gas imports and contributed to increased exports.
EIA expects that pipeline gross imports of natural gas will fall by 3.9 % to 8.7 Bcf/d during 2011 and by 4.0 % to 8.4 Bcf/d in 2012.
EIA projects that U.S. imports of liquefied natural gas (LNG) will fall from an average 1.2 Bcf/d in 2010 to 1.0 Bcf/d in both 2011 and 2012.

July 7 issue

Two weeks after the International Energy Agency (IEA) released 60 million barrels of oil from emergency stocks, oil prices have climbed back up from about $90 to $100 per barrel.
Positive economic news has put upward pressure on prices as Greece averted a default and the U.S. and emerging markets continue to show strong demand for crude.
Crude stockpile inventories fell 3.2 million barrels in the week ended Jul.1. Gasoline supplies fell 2 million barrels and distillate stocks declined 1.6 million barrels, according to The American Petroleum Institute (API) on Wednesday.
Three U.S. senators are moving toward reforms for ethanol subsidies by establishing a framework to replace the $6 billion a year ethanol tax credit could strike a deal by the end of the week. The framework, it is reported, would end the 45-cents per gallon blenders' tax credit.
Mild weather and natural gas storage build, boosted by strong shale-gas production, kept downside pressure on prices this week.
The combination of increased domestic natural gas production, low prices relative to historic highs, and expansion of installed gas fired electric generating capacity has significantly increased the use of natural gas for electricity generation over the last decade, according to a recent report from the EIA.
At the end of 2010, natural gas-fired generators constituted 39% of the Nation's total electric generation capacity of 1,042 gigawatts (GW). Nearly 237 GW of natural gas-fired generation capacity was added between 2000 and 2010, representing 81% of total generation capacity additions over that period, according to the EIA.

June 23 issue:

Oil markets remain extremely volatile on supply concerns and fears that EU’s sovereign debt crisis will spread from Greece to Ireland, Italy, Portugal and Spain
Oil prices nose dived on Thursday as 28 International Energy Agency (IEA) member countries agreed to release 60 million barrels of oil from their emergency strategic stocks, the first time since 1991
About half of IEA’s release or 30 million barrels of oil will come from the U.S. strategic petroleum reserve (SPR), which is currently at a record high level of 727 million barrels
The reserve will cost about twice as much to replace. In comparison, approximately 70 million barrels have been taking offline since the Gulf of Mexico drilling moratorium
The EIA forecasts that global oil demand will average 88.4 million barrels per day (bbl/d) in 2011, 1.7 million bbl/d higher than in 2010
This week opened with natural gas futures down for a sixth session as mild weather forecasts continued to weigh on the demand outlook for power-plant fuel
Global events could considerably tighten global natural gas market, driving up prices and creating increased competition between Europe and Asia, according to the EIA
The amount of natural gas traded has been increasing over the last five years. Liquefaction capacity has increased 30% since 2008, and trade in LNG has grown almost 30% since 2005. International pipeline trade is up almost 20% since 2005
Asia, the most import-dependent region, relies mostly on LNG, although China is actively pursuing pipeline projects with certain neighbors and opened its first import pipeline from Turkmenistan via Uzbekistan and Kazakhstan at the end of last year

June 16 issue:

Oil futures plunged on weak U.S. manufacturing data, slowed U.S. oil demand, and fears Greece's economic crisis will worsen
Increasing demand and reduced supply of light-sweet grades will continue to push crude above a $100 per barrel, according to a Reuter’s poll of energy experts
A record premium of Brent crude over U.S. futures reached an all time high of about $20
The upcoming hurricane season might "severely disrupt" Gulf of Mexico crude oil and natural gas from offshore platforms to onshore processing facilities, according to a recent report by the Energy Information Administration (EIA)
There is a 70 % probability that shut-in offshore production for the entire season will fall between 3.2 and 53.5 million barrels of crude oil
Over the next few years, world consumers are going to become more dependent on North and South America to meet increasing crude oil demand, according to a forecast released Thursday by the IEA
The energy agency predicts that 40% of demand growth over the next few years will come from China, with most of the rest coming from elsewhere in Asia and the Middle East
With mild weather replacing last week’s heat wave and healthy storage outlooks natural gas futures fell 2.7% -the lowest level in three weeks
Stockpiles rose 69 billion cubic feet (Bcf) in the week ended June 10 and U.S. and appear adequate to meet summer demand from power plants

June 9 issue:

Oil surged above $100 a barrel last week on a one-month high as OPEC members failed to reach a consensus on production targets for the first time in about 20 years
Supply uncertainty and a larger-than-expected decline in U.S. crude-oil inventories provided upward support for crude prices
U.S. gasoline demand at the pump slid 2.9% last week as Americans returned to work after the Memorial Day holiday weekend
Brent oil futures continue to capture a significant premium to U.S. crude
Despite rising prices, oil consumption in 2010 rose by 3.1%, more than double the 10-year average increase
Saudi Arabia’s oil minister proclaimed OPEC’s recent meeting in Vienna “one of the worst meetings” due to members division over whether or not to increase supplies to help cap world crude prices
The EIA warned that OPEC’s failure to reach a consensus exacerbates ongoing supply disruptions and the fragile state of the global economy
Natural gas prices rose on the week as a heat wave swept the Northeast

May 26 issue:

Oil continued its climb throughout the week on the back of a commodity rally, weak dollar, and larger than expected distillate draw
Investment bank Goldman Sachs raised its forecasts for oil prices citing global economic growth, emerging market demand, and tight OPEC spare capacity
Midweek, oil prices rose to their highest level in two weeks as U.S. inventories of distillates fell unexpectedly
U.S. dependence on imported oil fell from 60.3% in 2005 to 49.3% in 2010.
Mild spring weather and returning nuclear supply kept gas prices steady early in the week.
Prices moved higher at most trading locations in the lower 48 States, with the biggest increases occurring in the Southeast
A glut of shale gas being produced in the U.S. has kept prices in the $4 dollar range. However, increased production costs coupled with increased demand is likely to drive prices up in the next couple of years, said Ken Medlock, a fellow in energy studies at the James A. Baker III Institute for Public Policy at Rice University at the 2011 Deloitte Energy Conference on May 20
The oil and gas industry is embarking on a campaign to persuade Americans that drilling for massive new supplies of natural gas is safe

May 19 issue:

Troubling economic news out of the U.S. and Europe sent demand signals that drove prices down by approximately 15% in May
In Washington, a bill to end $21 billion in oil and gas tax breaks over 10 years for major oil companies failed in a test vote
A plan that would have sought to expedite new offshore drilling permits and open new areas to be leased to drilling companies was also defeated this week by the Senate
Crude oil advanced 3.3% above $100 a barrel on the NYMEX, the highest settlement price since May 10, after a report by the Department of Energy (DOE) showed an unexpected drop in U.S. inventories on Wednesday
OPEC reiterated its position that world supplies are adequate. OPEC oil prices have declined for two consecutive weeks
The International Energy Agency reduced its forecasts for global oil product demand growth in 2011 on "persistent" high prices and weaker growth projections for advanced economies
IEA announced that its member countries’ strategic stocks of 1.6 billion barrels, equivalent to 4 million barrels per day for a year, are ready in the event there is a serious supply disruption
The threat of reduced production arising from lower Mississippi River flooding sent prices up over the week but the gains failed to stick

May 12 issue:

Market participants remain fearful that high energy and raw material costs will undermine global economic growth and lead to demand destruction
Washington’s high gasoline price blame game singled out a host of usual suspects: speculators, unrest in Middle East and North Africa, natural disasters, weak U.S dollar and surging world oil demand
The House passed legislation Wednesday, approving bills that seek to expand and expedite offshore oil and gas drilling permits
News that China, the world's second-largest crude consumer, may further tighten its monetary policy also contributed to lowering prices
The recent selloff in oil futures might ease summer gasoline prices, which will average about $3.88 per gallon in June and $3.81 nationwide over the summer driving season, according to the U.S. Department of Energy (DOE)
The recent selloff in oil futures might ease summer gasoline prices, which will average about $3.88 per gallon in June and $3.81 nationwide over the summer driving season, according to the U.S. Department of Energy (DOE)
Forecasts suggest a gallon of regular gasoline will average $3.66 for all of 2012, up from $3.63 this year and $2.78 a gallon in 2010
Natural gas wholesale prices ended their run-up over the past month, dropping by up to 75 cents per MMBtu last week due to a 7% decrease in consumption on mild weather and a commodity market downturn
EIA forecasts that natural gas marketed production will increase 2.3% in 2011, considerably less than the 4.4% growth in 2010
Total electricity consumption in the U.S. this year is expected to remain fairly stable to 2010 levels

May 5 issue:

U.S. petroleum imports from Canada, Mexico, Brazil, and Venezuela increased last year according to a U.S. Energy Information Administration (EIA) report released on Wednesday
Domestic oil production, reversed decades-long decline in 2009 and 2010 due to deepwater and horizontal drilling shale plays
This week in Washington lawmakers discussed how the government should subsidize and tax various forms of energy in response to voters demand to reduce gasoline prices and the federal deficit
Since President Obama called for cutting tax breaks for oil companies again last week, senators from both parties have been focusing on the expiring credit for blending ethanol with gasoline
Weak economic data and buildup of stockpiles at Cushing, led to the biggest one-day percentage decline in more than two years as crude oil prices fell 9% Thursday
Market participants increased bullish bets on natural gas to rise by 38% in the seven days ended April 26, the highest level in three months, on smaller- than-expected stockpile gains
Prices were sustained at highs on reduced nuclear output due to seasonal maintenance and shutdowns after the worst day of tornadoes in 37 years brought nuclear generation to the lowest level since Oct. 26, 2000

April 28 issue:

Token gestures from U.S. policy makers to curtail fraud failed to alleviate the burden of $4 per gallon gasoline
Super oil majors reported significantly higher year-over-year first-quarter earnings this week on higher crude-oil prices and improved refining profits
President Obama called on industry to develop alternative energy sources and an end to tax breaks
Bullish market signals drove up prices on declining gasoline stockpiles and fears of further Mideast unrest as oil prices hit new two-week highs
Brent oil to Henry Hub natural gas showing a spread that is five times more valuable on an energy-equivalent basis
Active oil-directed rigs have surpassed the number of natural gas-directed rigs for the first time in almost a decade
Retail gasoline prices climbed for a fifth straight week
The head of Saudi Arabia's national oil company reaffirmed that it would leverage its swing capacity to stabilize the market if necessary, flattening out prices Tuesday
Domestic gas consumption decreased this week by 5.4% from last week

April 21 issue:

The House Natural Resources Committee favorably reported three Republican-backed measures that speed up leasing and permitting on offshore drilling on the Outer Continental Shelf
Standard & Poor's (S&P's) lowered the U.S. government's credit rating
On Thursday, the prompt “WTI” contract jumped above $112 per bbl to near the highest level since 2008 amid signs that U.S. demand remains robust despite rising fuel costs
Brent fell below $120 per bbl for the first time in two weeks, but was back up around $124 per bbl on Thursday, sustaining a strong premium to WTI
Saudi's oil minister announced this week that it cut back oil production by 800,000 barrels per day of sour crude in March due to poor demand
There is a looming threat of further supply disruptions as unrest spreads to Syria, Jordan, Iran, Oman, Algeria, Bahrain, and Yemen
Escalating violence in Nigeria, Africa's biggest oil producer, also added to investors' uncertainty of global oil supply
Despite a 29 percent jump in oil prices since mid-February, higher fuel costs have not curbed demand
At 208 million bbl, U.S. gasoline inventories are 7.5% less than a year ago and 1.5% below the five-year average mark
In its weekly inventory report, the Energy Department said U.S. oil supplies fell by 2.3 million bbl in the week ending April 15, surprising analysts expecting an increase of 1.6 million bbl
Scheduled natural gas shipments to U.S. power plants rose to the highest level in almost 10 weeks
Natural-gas futures ended at their highest levels in 11 weeks Thursday after a second consecutive smaller-than-expected weekly build in U.S. inventories, cold weather lingered in the Northwest and upper Midwest and early season cooling demand increased in the South
Scheduled natural gas shipments to U.S. power plants rose to the highest level in almost 10 weeks
Colder-than-normal temperatures are expected in May through July across the northern tier of the U.S. and warmer-than-normal weather is expected from the Southwest through the Gulf Coast, according to the National Oceanic and Atmospheric Administration.

April 14 issue:

Oil market highlights: Roller coaster ride
Prices seesawed up and down as traders shifted their focus back and forth between conflicting supply-side and demand-side factors
After soaring to their highest levels in more than 2.5 years on global supply worries late last week, benchmark crude oil prices plummeted early this week on demand concerns
Both the IMF and the IEA indicated that sustained high petroleum prices pose a key risk to world economic expansion and may already be curtailing oil demand growth
Oil prices rebounded at midweek after an EIA report showed the biggest one-week plunge in US gasoline inventories in more than 12 years
Prices rose further on Thursday, helped by a falling US dollar and by media reports that Saudi Arabia may be reducing production of light crude oil blends
Natural Gas market highlights: Spring weather brings comparative calm
As the spring shoulder season takes hold, the US natural gas market remains calm in comparison to the tumultuous oil markets
Henry Hub futures prices continue to inhabit the low-$4.00 per MMBtu neighborhood
Traders remain caught between near-term expectations of weak fundamentals and longer-term expectations that gas demand will rise seasonally this summer
Lower-48 working gas inventories rose by 28 Bcf last week --leaving stocks at a near-average level

April 7 issue:

Oil market highlights: WTI surpasses $110
The main reason for the past week's price gains can be synopsized in two words: supply worries
Price rose on fears that extended fighting could prolong curtailments of Libyan oil exports and that civil unrest in the Middle East or in Nigeria could lead to additional supply disruptions
The market's supply angst was exacerbated by reports that government loyalist forces had started a fire at Libya's Sarir oil field
Oil prices trekked skyward on Thursday despite concerns that interest-rate hikes in Europe and China could dampen oil demand growth in those regions; US economic data buoyed oil prices
The US still appears to remain well supplied with crude oil; US gasoline inventories declined by less than expected and distillate stocks rose last week
Natural Gas market highlights: Support fades
Benchmark US gas prices declined after last week's cold snap receded and as market participants looked ahead to more moderate temperatures in the near term
The front-month NYMEX Henry Hub Futures Contract continued its week-long retreat and fell to $4.06 per MMBtu on Thursday
Lower-48 working gas inventories ended the 2010-11 heating season at a near-average level --providing a solid foundation for the 2011 injection season
Gas market bulls no doubt have welcomed recent outlooks calling for an active 2011 hurricane season in the Atlantic Basin

March 31 issue:

Oil market highlights: Looking at Libya
After staying within their recent trading ranges for most of the past seven-day period, oil prices moved decidedly higher today
Benchmark NYMEX crude oil futures prices surged to $106.72 per bbl on Thursday on concerns that Libyan oil supplies will remain curtailed for an extended period and on a weaker US dollar
Prices rose as Libyan rebels reportedly lost ground to government loyalist forces; high political tensions in several Middle Eastern countries also continue to support oil prices
Declines in the US dollar against the Euro and supportive US economic data --the latter suggesting improved prospects for US oil demand --also boosted the petroleum complex
US crude oil inventories continue to rise; domestic gasoline stocks declined more than anticipated
Natural Gas market highlights: Weathering the season
The EIA reported the first net storage injection of 2011 on Thursday, but supportive weather (and forecasts for more of the same) limited the bearish impact on gas prices
Lower-48 working gas inventories increased by 12 Bcf on a net basis during the week ending Friday, March 25, 2011
Mild weather during the storage report week and strong US gas supply facilitated the storage build
US gas production remains robust; the EIA reported that US output averaged 63.5 Bcf per day in January 2011 --6.4% more than a year earlier

March 24 issue:

Oil market highlights: Staying on edge
Geopolitical fears centered on North Africa and the Middle East are keeping oil market participants on edge --and oil prices high and volatile
Allied airstrikes in Libya and intensifying civil unrest in several Middle Eastern countries exacerbated the market's concern about oil supply disruptions --both current and potential
The fear premium in benchmark petroleum prices persists and shows little sign of shrinking; WTI prices settled at $105.75 per bbl on Wednesday
WTI prices eased slightly on Thursday on renewed EU sovereign debt concerns and as traders considered negative economic data released during the week
The EIA's midweek oil snapshot showed that the US remains well supplied with crude oil; US gasoline stocks once again fell more than expected
Natural Gas market highlights: Springing to life
Supportive weather --and forecasts calling for more of the same through the end of this month --bolstered gas prices this week
Lower-48 working gas inventories declined by 6 Bcf on a net basis during the week ending Friday, March 18, 2011
The EIA reported that US gas production continues to set new records as shale gas output continues to grow; however, the gas rig count continues to fall

March 17 issue:

Oil market highlights: Disaster in Japan shakes oil market --temporarily
Last Friday's earthquake and tsunami in Japan injected more uncertainty into the global petroleum picture
Oil prices headed lower early this week on reports of significant shutdowns of Japanese manufacturing facilities and petroleum refineries
However, prices rebounded at midweek as Japanese refineries restarted and as the market refocused on the situation in North Africa and the Middle East
WTI prices jumped back above $101 per bbl on Thursday, aided by intense fighting in Libya and fears that civil unrest in Bahrain could spread into (and disrupt oil production in) Saudi Arabia
Natural Gas market highlights: Prices rally above $4.00
US gas market participants went on a buying spree after the EIA reported a larger-than-expected weekly storage withdrawal
Encouraging US economic readings also may have contributed to Thursday's bull run
Lower-48 working gas stocks are about even with their year-earlier level and are 1.4% above the five-year average
The EIA reported that US gas production was very robust during the past week at nearly 63.0 Bcf per day (+5.2% year over year)
The effect on US gas prices of speculation that Japan will need to import more LNG for power generation (due to nuclear plant outages) was minimal

March 10 issue:

Oil market highlights: Prices fluctuate above $100
Oil prices remain elevated due to the disruption of Libyan supplies and to fears that unrest could lead to production curtailments in other nations
Supply concerns remain the oil market's headline, but market participants also are monitoring indicators of petroleum demand
Prices headed lower on Thursday due to negative economic news and the potential implications for oil demand growth
But benchmark crude prices stayed above $100 per bbl as conflict continued to rage in Libya; the IEA said Libyan exports fell below 0.5 million bbl per day
US inventories of crude oil grew --including at Cushing, OK --while gasoline and distillate inventories plummeted last week
Natural Gas market highlights: Remaining range-bound
Henry Hub prices remain stuck in the $3.75-3.95 per MMBtu range on the market's belief that gas supply is likely to stay ample in the short term
This sentiment only increased on Thursday after the EIA reported a smaller-than-expected storage withdrawal of 71 Bcf
While the overall view remains one of robust US gas output, the EIA expects US production to ease gradually during 2011 due to a lower gas rig count

March 3 issue:

Oil market highlights: Jumpy prices rise above $100
The ongoing revolt and resulting oil production disruption in Libya continue to drive oil price movements --and to keep prices high and volatile
Fears that output disruptions may spread beyond Libya increased this week as civil unrest flared up in countries such as Iran, Iraq, and Oman
The IEA reported that Libyan shut ins have risen to 0.85-1.00 million bbl per day
Reports suggested that some Libyan oil exports were still shipping and the IEA stated that EU refiners are adequately supplied at least through the end of March
A 3.6-million bbl draw in US gasoline inventories headlined the EIA's weekly snapshot of US oil fundamentals --and bolstered the fuel's price
Natural Gas market highlights: Bulls remain four-lorn
· US gas market bulls remain challenged to keep benchmark gas prices above $4.00 per MMBtu
Gas prices are under pressure from market perceptions that US production will continue at a robust pace while demand eases seasonally
US dry gas output averaged 59.1 Bcf per day in 2010 --4.8% more than in 2009 and the highest level since 1973
A below-average volume of gas was withdrawn from Lower-48 storage facilities for a second consecutive week

February 24 issue:

Oil market highlights: Prices leap on Libya
Petroleum traders went on a buying spree as riots in Libya intensified into full-blown revolt during the past seven days
Reports that Libyan oil output was being reduced kept benchmark oil prices moving higher on Wednesday and early on Thursday
The IEA estimates that 0.50-0.75 million bbl per day of Libyan production (recently 1.6 million bbl per day) has been curtailed; other estimates vary widely
Fears that Libyan supply disruptions could lead to increased competition for sweet crudes in the Atlantic Basin contributed to US gasoline price strength
Oil prices eased late on Thursday following reassurances from Saudi Arabia, the IEA, and the US that shortfalls in Libyan supplies could and would be managed
After surging early in the day, the prompt NYMEX Light, Sweet Crude Oil Futures Contract ultimately closed down by 0.8% at $97.28 per bbl on Thursday
Natural Gas market highlights: Staying the course
With the notional end of the heating season now only five weeks away, bearish sentiment continues to dominate US gas futures markets
Expectations that weather-related demand will moderate while domestic production remains robust are keeping Henry Hub prices below $4.00 per MMBtu
Lower-48 working gas inventories slipped by 81 Bcf on a net basis, shrinking the year-over-year storage deficit to 2.6%

February 17 issue:

Oil market highlights: Risky business
Oil prices first declined and then rebounded over the past seven days along with perceptions of geopolitical risks to oil supply
The front-month NYMEX Light, Sweet Crude Oil Futures Contract climbed to settled at $86.36 per bbl on Thursday
Although it contracted today, Brent's price premium to WTI remains at extraordinary levels due largely to regional factors
Chinese trade data continue to give oil market participants reason to believe that the nation will lead world oil consumption higher
US distillate stocks fell by 3.1 million bbl as total US petroleum consumption rose to its highest level so far in 2011
Natural Gas market highlights: Prices languish
Moderating weather and expectations of ample gas supply are keeping benchmark US gas prices under $4.00 per MMBtu
Lower-48 working gas inventories dropped by 233 Bcf on a net basis, widening the year-over-year storage deficit
Year-to-date US dry gas output is nearly 6.0% higher than a year earlier --and would have been even greater if not for well freeze-offs

February 10 issue:

Oil market highlights: Tensions remain
Tensions in Egypt continued to add a risk premium to oil prices this week
Brent's price premium to WTI rose to a new record as Egypt concerns bolstered Brent and high crude stocks at Cushing, OK depressed WTI
Oil prices declined early in the week after China raised its benchmark interest rate --but rose after the IEA said oil markets will tighten this year
US gasoline inventories stormed higher for another week to their highest level since March 1990…
…but benchmark US gasoline prices still remained near $2.50 on concerns over planned and unplanned refinery outages
Natural Gas market highlights: March prices march below $4.00
Neither frigid temperatures nor harsh winter storms seem to have much effect on nearby futures prices any longer
Lower-48 working gas stocks fell by 209 Bcf last week as widespread Arctic weather sent demand soaring while severely curtailing US gas output
Nevertheless, the market appears convinced that inventories will end the heating season at solid levels from which to rebuild

February 3 issue:

Oil market highlights: Uprising
Oil prices soared on fears that civil unrest in Egypt would close the nation's key oil transit routes or spread to nearby producing countries and disrupt output
Marker crude prices reached their highest levels since the autumn of 2008 early in the week, but later eased as oil supplies remained unaffected
Economic indicators in major oil consuming nations continue to support expectations for robust world oil demand growth
US gasoline inventories are at their highest level since March 1993; total US crude oil stocks continue to rise
Crude inventories at Cushing, OK keep marching higher --thereby depressing benchmark WTI prices relative to those for Brent and other grades
Natural Gas market highlights: Looking to the near future(s)
Very cold weather has supported US spot gas prices but has been unable to rouse gas futures markets from their torpor
Benchmark Henry Hub futures prices remain mired in the mid-$4.00 per MMBtu range as traders look toward the end of the heating season
Lower-48 working gas inventories now trail their year-earlier level after yet another above-average weekly withdrawal
Strong year-over-year growth in US gas output continues to characterize the domestic gas supply picture --and to keep gas prices in check

January 27 issue:

Oil market highlights: Price correction
Market participants remain focused on the outlook for oil demand growth --and thus on economic indicators…
…but statements by OPEC officials returned some of the market's attention to supply this week
High and rising crude oil stocks at Cushing, OK pushed the Brent-WTI futures spread to a record high on Thursday
The chances that OPEC soon will boost output substantially to quell oil prices remain uncertain
Natural Gas market highlights: Bears refuse to hibernate
Despite cold weather in some key US heating regions, the gas market once again was unable to sustain a price rally
Lower-48 working gas inventories fell by an above-average 174 Bcf --in line with the consensus projection
Despite the sizeable storage withdrawal, traders focused on outlooks for inventories to remain ample at the end of March
Both US gas production and the US gas rig count rose slightly

January 20 issue:

Oil market highlights: No bull --WTI prices fall below $90 per bbl
Prices fell as a bearish US oil storage report converged with fears that China soon will take steps to slow its economy…
…Underscoring China's role as the primary driver of current and expected future growth in world oil demand
High Cushing stocks and recent outages at some North Sea producing platforms are keeping WTI at a big discount to Brent
The IEA has boosted its projection of world oil demand for 2011 to 89.1 million bbl per day owing to strong 4Q10 consumption
Natural Gas market highlights: Light at the end of the tunnel?
Benchmark US gas prices soared to $4.70 per MMBtu on a bigger-than-expected storage withdrawal
The rising pace of gas storage withdrawals and forecasts of continued cold weather have eased price pressures a bit…
…But strong year-on-year US gas production growth continues to work against sustained price gains
The US gas rig count continues to ease gradually
According to the IEA, unconventional gas production now accounts for 12% of global gas output

January 13 issue:

Oil market highlights: Prices fluctuate above $90
Expectations of global economic and oil demand growth in 2011 continue to set a bullish undertone in petroleum markets
Crude prices rose after the Trans-Alaskan Pipeline System sprang a leak and was shut down for several days
Total US crude oil inventories declined last week, but stocks at Cushing, OK remain very high…
…keeping WTI prices at a steep discount to those for UK Brent
US inventories of both gasoline and distillates posted substantial builds
Natural Gas market highlights: Stuck in the mid-$4.50s
A smaller-than-expected storage withdrawal and moderating weather forecasts undermined benchmark gas prices
Lower-48 working gas inventories are now 2.4% higher than a year earlier and 5.8% above the five-year average level
The EIA expects Lower-48 working gas inventories to end the heating season at 1,774 Bcf --a new record high

January 6 issue:

Oil market highlights: Dancing around $90
Petroleum markets began 2011 on much the same note that they ended 2010
Market participants remain focused on assessing the extent to which rising global oil demand will tax supply in the months ahead
Benchmark US crude oil prices continue to waltz on either side of $90 per bbl --a significant discount to UK Brent
US gasoline prices remain robust owing to a variety of direct and indirect factors
Natural Gas market highlights: Weather --or not
A cold December succeeded in eroding some (but not all) of the gas storage overhang despite strong US production
Weather outlooks remain the key driver of US gas markets and are contributing to short-term price uncertainty
In October 2010, US dry gas production was essentially flat to September and 7.5% higher than a year earlier
Market participants will pay close attention to US gas rig counts in the coming weeks to see if recent declines continue

December 23 issue:

Oil market highlights: Prices head for the North Pole --and beyond
Benchmark WTI crude oil prices broke through the $90-per bbl mark on Wednesday and held above that level on Thursday
Rising optimism in the marketplace about the global economy and oil demand in 2011 is the primary driver behind oil price gains
However, downside price risk still remains, given diverse factors such as the possibility of slower Chinese demand growth next year
OPEC may come under pressure to raise output quotas prior to its next scheduled meeting in June 2011
The true significance of another weekly plunge in US crude oil stocks is unclear given year-end factors
Natural Gas market highlights: 'Tis the season…
Cold weather has sent US gas consumption surging in recent weeks, but gas prices have not done likewise
The persistent supply overhang continues to keep gas prices in check, despite another big weekly storage withdrawal
In light of robust supplies, weather likely will be the key variable that determines gas prices during the remainder of the heating season

December 16 issue:

Oil market highlights: OPEC --and oil prices --keep the status quo
OPEC decided to maintain its existing output quotas at its December meeting
OPEC believes oil markets remain well supplied despite rebounding demand, and remains wary of prospects for continued growth
WTI-Cushing and Dated Brent prices continue to fluctuate just below and just above $90 per bbl, respectively
The EIA reported a huge one-week plunge in US crude oil stocks, but refined products inventories did not follow suite
Recent IEA data indicate that a tighter global oil supply-demand balance appears to be the primary pillar of oil price support
Natural Gas market highlights: No early holiday cheer for market bulls
Gas prices sank on Thursday despite a triple-digit storage withdrawal that was in line with consensus expectations
Benchmark US gas futures prices once again have fallen to within striking distance of $4.00 per MMBtu
The rapid retreat in gas prices following the early-season cold spell points to the market's confidence in US gas supplies
According to recent EIA data, proved US gas reserves rose by
US proved reserves of wet gas rose to 284 Tcf at the end of 2009 --a one-year increase of nearly 30 Tcf, or roughly 11.0%

December 9 issue:

Oil market highlights: Staying near $90
Blitzed by a bevy of bullish and bearish factors, benchmark US crude oil prices have fluctuated in the high-$80 per bbl neighborhood
Greater economic optimism, rising oil demand, easing oil inventories, and cold weather in the Northern Hemisphere are helping to bolster prices
The EU debt crisis, disappointing US jobs data for November, and hints that China may raise interest rates are working against further price gains
The EIA reported large, unexpected builds in US stocks of gasoline and distillate; however, the report was not all bad news for market bulls
OPEC is widely expected to decide to leave its existing output quotas unchanged at its meeting this weekend (December 11, 2010)
Natural Gas market highlights: Clash of the titans
Gas prices spent much of the past seven-day period moving higher as frigid temperatures descended upon the northern and central US
Yet, prices fell today despite a net storage withdrawal that was both greater than average and slightly bigger than expected
The EIA currently expects Lower-48 working gas inventories to end the 2010-11 heating season at a robust 1,833 Bcf

December 2 issue:

Oil market highlights: Economic data propel prices higher
Oil prices surged to two-year highs on a wave of supportive macroeconomic news, a falling US dollar, and rising equities
Expanding manufacturing activity in major oil-consuming nations spurred market bulls
The petroleum complex raced higher despite a somewhat bearish US oil storage report
US crude stocks unexpectedly rose for a second week; US petroleum consumption fell to its lowest level since mid-October
Natural Gas market highlights: Hurricane season ends quietly
With the tropical storm season now over and net storage withdrawals rising, “winter” has begun for the US gas market
Benchmark US gas futures prices continue to fluctuate in low-$4.00 per MMBtu territory
Lower-48 working gas inventories declined by a smaller-than-expected 23 Bcf last week
The epic boom in US gas production continues to shape the North American gas market - and to limit gas prices

November 24 issue:

Oil market highlights: Big-picture factors whipsaw oil prices
Macroeconomic and geopolitical factors pressured oil prices lower over much of the past week
However, oil prices snapped back strongly at midweek despite somewhat bearish fundamental data
US crude and gasoline inventories unexpectedly rose as distillate stocks posted a modest draw
Dubai crude oil futures recently switched into backwardation, largely due to high diesel demand in China
Natural Gas market highlights: Storage posts first net withdrawal of the season
For the week ending Friday, November 19, 2010, Lower-48 working gas inventories fell by 6 Bcf
Declining average temperatures are spurring heating demand and pushing gas prices seasonally higher
US gas prices remain largely a weather play as traders look ahead to peak winter heating demand
Drilling activity still shows little sign that a substantial decline in US gas production is imminent

November 18 issue:

Oil market highlights: Prices traverse the $80-90 per bbl range
Prices slid over most of the past week on concerns about EU sovereign debt and potential anti-inflationary moves in China
The oil complex rebounded on Thursday on supportive fundamental data as broader concerns eased
US crude oil inventories plummeted and domestic gasoline stocks fell more than expected
· Natural Gas market highlights: Prices still waiting for winter
Market bulls still await the onset of sustained net storage withdrawals - which is drawing closer
With heating demand still ramping up, massive storage volumes continue to weigh on gas prices
Lower-48 working gas inventories grew by 3 Bcf to 3,843 Bcf - a new all-time high
Thanks to bulging storage and booming domestic production, the US gas market appears to be well supplied for the coming winter

November 11 issue:

Oil market highlights: Fundamentals get a piece of the action
Exogenous factors continue to influence oil prices, but market fundamentals made traders take notice at midweek
Oil prices surged higher following reports of much larger-than-expected draws in US petroleum stocks
Chinese refinery throughput reached a new record high in October
The IEA now sees world oil consumption rising to about 99 million bbl per day by 2035 --led by growth in China
Natural Gas market highlights: Tug-of-war
Falling temperatures are raising US gas consumption and prices seasonally, but record-high gas storage is limiting price gains
Lower-48 working gas inventories rose to a new record high of 3.84 Tcf during the week ending November 5, 2010
The EIA now expects US gas consumption to rise only modestly in 2011 while US production dips slightly
The IEA foresees global gas demand growing by 44% by 2035 --led by China and the Middle East

November 4 issue:

Oil market highlights: Fed-up Fed serves up a bull run
The Fed's midweek announcement of further quantitative easing sent oil prices surging as the US dollar plunged
Prompt NYMEX crude futures reached their highest level in almost 7 months; oil prices may be settling into a new trading range
Domestic distillate and gasoline stocks fell sharply while crude oil inventories rose
US East Coast gasoline supplies have been limited recently, leading to large regional draws in the fuel's stocks
Natural Gas market highlights: Prices rise seasonally - but only grudgingly
Although US gas prices have risen seasonally, high storage inventories and weak fundamentals have limited gains
A transition month, November is a wildcard that could impact gas prices throughout the coming winter
Lower-48 working gas inventories jumped above 3.8 Tcf to a new all-time high for the week
The EIA's new estimate of US gas production for August 2010 gives no sign of a slowdown in domestic output

October 28 issue:

Oil market highlights: Trick or treat
Benchmark crude oil prices stayed in low-$80 per bbl territory over the past seven days
Market participants continue to search oil fundamentals and broader economic indicators for direction
The ongoing weakness of the US dollar is lending support to the petroleum complex
In the US, commercial crude oil stocks surged higher while gasoline inventories plummeted
Natural Gas market highlights: Inventories rise to haunting heights
Lower-48 working gas in storage surged to 3.75 Tcf --matching the record-setting level of a year earlier
Gas market participants are increasingly turning their attention toward the upcoming winter
Industry pundits generally expect moderate US gas price levels and volatility during the 2010-11 heating season
As always, weather will be a key wintertime wildcard for gas markets

October 21 issue:

Oil market highlights: Striving to stay above $80
The US dollar's marked weakness and positive equities market movements have supported petroleum prices in recent weeks
However, underlying oil market fundamentals continue to act as a sort of reality check
New data pointing to slower economic growth and rising inflation in China pressured oil prices
Weekly US oil inventory data were mixed; total US petroleum product demand remains moderate
Natural Gas market highlights: A bear of a season
Continued mild US weather and strong domestic production have kept gas flowing into storage facilities at a blistering pace
Lower-48 working gas inventories shot up by a remarkable 93 Bcf on the week, pushing benchmark US gas prices lower
Domestic gas production appears to remain stubbornly high despite persistently weak gas prices

October 14 issue:

Oil market highlights: Leaving well enough alone
OPEC decided on Thursday to leave its official production quotas unchanged for the time being
Benchmark crude oil prices generally have strengthened in recent weeks
Oil market participants may have had to look twice at this week’s petroleum update
Oil market participants continue to monitor labor unrest in France
Natural Gas market highlights: Slumping seasonally, and then some
With limited fundamental support, US benchmark gas prices at Henry Hub floundered most of the past week
Lower-48 working gas inventories rose by 91 Bcf during the week ending Friday, October 8, 2010
The EIA expects total US gas consumption to remain ahead of its year-earlier level in the fourth quarter

October 7 issue:

Oil market highlights: Running of the Bulls comes to a halt
A widespread, speculation-driven buying spree in commodities markets helped to catapult petroleum prices higher
The US Energy Information Administration (EIA) released a mixed snapshot of domestic oil fundamentals
On the bullish side
On the bearish side
Natural Gas Market highlights: Prices tank as storage swells
With slack shoulder-season consumption and US gas production apparently remaining robust for the time being, gas market bulls continue to face an uphill battle.
U.S. gas production remained strong during the week ending October 6
The American Gas Association (AGA) and the Natural Gas Supply Association (NGSA) expect US gas supplies to be sufficient to accommodate year-over-year demand growth during the upcoming heating season

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