Commodity Corner: Oil Climbs on Europe Debt Plan

- Commodity Corner: Oil Climbs on Europe Debt Plan

Thursday, July 21, 2011
Rigzone Staff
by Saaniya Bangee

On Thursday, oil futures settled at their best since early June, briefly peaking above $100 a barrel, as European leaders made progress on a plan to deal with its debt crisis.

Crude for the new front-month contract gained 73 cents Thursday, settling at $99.13 a barrel. Prices peaked as high as $100.16 a barrel early in the session.

Top European officials met in Brussels today to discuss releasing a rescue package for Greece. The leaders agreed to lower interest rates on European Financial Stability Facility loans while extending loan maturities. Details from the plan are expected to be released soon.

Meanwhile, Brent crude fluctuated between $116.95 and $119.19, before settling at $117.51 a barrel.

Earlier Thursday, the International Energy Agency (IEA) said it won't release additional emergency oil reserves. Last month, the IEA released 60 million barrels of oil to alleviate the disruption of supplies from Libya.

August natural gas fell 11 cents, ending the session at $4.395 per thousand cubic feet after government reports reported an increase in natural gas stockpiles. The U.S. Energy Administration said natural gas stockpiles grew by 60 billion cubic feet, totaling 2.671 trillion cubic feet for the week ended July 15.

The intraday range for natural gas was $4.37 to $4.59 per thousand cubic feet.

Gasoline futures decreased nearly 5 cents, settling at $3.10 a gallon. RBOB prices peaked at $3.16 and bottomed out at $3.09 Thursday.

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Ecopetrol 2Q Profit Climbs 89% to $1.93B

- Ecopetrol 2Q Profit Climbs 89% to $1.93B

Thursday, July 21, 2011
Dow Jones Newswires
BOGOTA
by Darcy Crowe

Colombia's state-controlled energy company Ecopetrol reported robust second-quarter net profits Thursday, fueled by higher oil prices and rising production.

Net profits last quarter were 3.4 trillion Colombian pesos ($1.93 billion), an 89% jump from COP1.8 trillion in the second quarter last year.

"In the first half of 2011 we had historically high financial and operating results," said Ecopetrol President Javier Gutierrez in a statement.

The company's earnings before interest, taxes, depreciation and amortization, or Ebitda, was COP7.57 trillion last quarter, a 111% jump from a year earlier, the statement said.

Ecopetrol's production, without its affiliates, rose to 674,400 barrels a day of oil equivalent in the second quarter, a 21% gain from that quarter of last year, it said.

Analysts attribute the increased oil output by Ecopetrol to higher recovery rates in mature fields and new projects coming into line.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Commodity Corner: Dollar Declines, Crude Climbs

- Commodity Corner: Dollar Declines, Crude Climbs

Tuesday, May 31, 2011
Rigzone Staff
by Saaniya Bangee

Crude futures climbed to a three-week high Tuesday as concerns eased over Europe's debt crisis.

July's oil prices gained $2.11 Tuesday before settling at $102.70 a barrel on the New York Mercantile Exchange. The greenback fell against the euro as the European Union debated on sending additional financial aid to boost Greece's economy. Luxembourg Prime Minister Jean-Claude Juncker said a new aid package will be decided on by the end of June. A weaker dollar increases the appeal of the dollar-denominated commodities making it cheaper for foreign buyers.

After noticing a 40-barrel spill at a pump station in Kansas, TransCanada temporary closed down its Keystone pipeline—further pressuring oil prices Tuesday. The Keystone pipeline carries half a million barrels of crude per day from Alberta to Cushing, Okla., the largest oil storage hub in the U.S.

Oil prices peaked at $103.39 a barrel and bottomed out at $99.60 on Tuesday.

Natural gas for July delivery traded up Tuesday, adding 15 cents to settle at $4.67 per thousand cubic feet. Prices rose to their highest in four weeks on forecasts predicting above-average weather. Hotter weather increases demand for fuel which is required for air conditioning. The intraday range for natural gas was $4.525 to $4.71 per thousand cubic feet.

Gasoline prices also ended higher Tuesday. After fluctuating between $3.07 and $3.165, gasoline settled at $3.15 a gallon, 5.84 cents higher from the previous trading session.

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Commodity Corner: Crude Climbs on Weaker Dollar

Commodity Corner: Crude Climbs on Weaker Dollar

Tuesday, April 19, 2011
Rigzone Staff
by Saaniya Bangee

Crude futures retreated Tuesday's earlier losses as the dollar weakened against foreign currencies.

Light, sweet crude gained $1.03 to settle at $108.15 a barrel. Tuesday marks the last trading session for the May contract.

Reaching as low as $105.50 a barrel, oil prices reversed course soaring in afternoon trading. As the dollar weakened, the euro gained strength on speculation that the European Central Bank will further increase interest rates. Additionally, strong economic data from France and Germany outweighed fears of Greece restructuring its debt. A weaker greenback increases crude's appeal amongst foreign buyers, making it cheaper.

Prices also bounced back from Monday's lows after Treasury Secretary Timothy Geithner assured there was "no risk" that the U.S. government debt would lose its top-tier rating.

Meanwhile in the Middle East, OPEC Secretary General Abdullah Al-Badri said there isn't a shortage of oil in the global market, even after the supply disruptions in Libya. OPEC believes an increase in crude production will not decrease oil prices worldwide.

Likewise, natural gas futures for May delivery rose to two-week highs settling at $4.26 per thousand cubic feet. The 12.4-cent increase came on a surprising surge in the Midwest's heating demand Tuesday. An unusual drop in weather across most of the Northwest and upper-Midwest and unexpected warmth in the south has increased demand for fuel. The intraday range for natural gas was $4.13 to $4.28 Tuesday.

As retail gasoline rose, May gasoline continued to decline, trading down 1.97 cents Tuesday. Futures settled at $3.23 a gallon increasing concerns that fuel costs will hinder economic recovery and decrease demand for motor fuel in the U.S. Gasoline prices peaked at $3.259 a gallon, before bottoming out at $3.198 Tuesday.

Commodity Corner: Crude Climbs on Equities, Mideast

Commodity Corner: Crude Climbs on Equities, Mideast

Tuesday, March 29, 2011
Rigzone Staff
by  Saaniya Bangee

Crude futures advanced 0.8 percent Tuesday on stronger equities and doubts on whether Libyan rebels can resume crude exports within a week.

Tuesday's stock market rally helped oil prices snap out of a 3-day slump, settling at $104.79 a barrel. The 81-cent gain came in anticipation of increased oil demand in the U.S. As the first quarter for 2011 nears close, the Dow Jones Industrial Average and the Standard & Poor's 500 Index both gained 0.7 percent in afternoon trading.

Earlier Tuesday, prices fell to $102.70 a barrel on Libyan rebels' promise to swiftly return crude exports to markets. Traders remain weary as to how quickly and capable Libya will be in resuming exports, along with the remaining uncertainty in the Middle East.

Meanwhile, natural gas futures for April delivery fell by 3.1 percent to settle at $4.24 per thousand cubic feet. The April contract expired at Tuesday's settlement, which traders seized as an opportunity to cash out previous profits.

The Energy Information Administration reported 66.67 billion cubic feet a day, 0.5 percent lower, for U.S. natural gas production in the lower 48 states. The drop was still 6.8 percent higher from year-earlier levels.

Natural gas prices fluctuated between $4.195 and $4.37 Tuesday.
Front-month gasoline ended up Tuesday, settling at a session high of $3.05 a gallon. The session bottomed out at $3.01 a gallon.