Commodity Corner: Oil Settles Higher on Euro Rebound

- Commodity Corner: Oil Settles Higher on Euro Rebound

Monday, September 12, 2011
Rigzone Staff
by Matthew V. Veazey

Monday came and went without a Greek debt default, and the euro managed to rebound from its lowest point since mid-February.

Because oil becomes a better value for investors when other currencies strengthen against the U.S. dollar, the price of a barrel of light sweet crude oil for October delivery gained 95 cents to settle at $88.19 Monday. The Brent contract price, however, lost 52 cents to end the day at $112.25 a barrel.

Investors increasingly braced themselves last week for Greece to default on its national debt payments, with some expecting the situation to reach a head on Monday. As a result, the euro headed downward for much of the day until bottoming out at $1.3495. The currency regained some positive movement against the dollar. According to the European Central Bank, Monday's reference rate was $1.3656.

The WTI traded within a range from $85.00 to $88.95 while the Brent contract fluctuated from $110.62 to $113.69.

With Tropical Storm Nate steering clear of the U.S. Gulf Coast, instead making landfall in Mexico's Tabasco state, investors see no near-term threats to oil and gas infrastructure in the Gulf. Moreover, forecasters expect Tropical Storm Maria to remain in the Atlantic and veer away from the U.S. East Coast. As a result, October natural gas lost three cents to end the day at $3.885 per thousand cubic feet.

Natural gas peaked at $3.925 and bottomed out at $3.83 Monday.

October gasoline also lost three cents, settling at $2.74 a gallon. The front-month contract fluctuated from $2.71 to $2.78.

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Commodity Corner: Oil Falls as Euro Weakens

- Commodity Corner: Oil Falls as Euro Weakens

Friday, September 09, 2011
Rigzone Staff
by Matthew V. Veazey

Light sweet crude oil for October delivery fell below $86.00 a barrel Friday as the U.S. dollar strengthened against the euro.

The WTI bottomed out at $85.64 a barrel before settling at $87.24, still reflecting a day-on-day loss. It peaked at $89.50. The Brent contract price also ended the day lower, settling at $112.77 after trading within a range from $111.09 to $113.89.

A weaker greenback is bullish for crude oil—priced in dollars—because it becomes a better buy for investors holding other currencies. In the case of the euro Friday, the currency weakened amid mounting fears that Greece will default on its debt. The departure of a high-level German official from the European Central Bank Friday contributed to speculation that euro-zone countries will fail to resolve lingering policy disputes that have hindered efforts to resolve debt crises throughout the region.

Equities fell as the euro-zone uncertainty grew, chilling expectations about global demand for oil. The Dow Jones Industrial Average and S&P 500 each lost approximately 2.7 percent while the Nasdaq lost a relatively modest 2.4 percent. President Obama's latest plan to spur job creation in the U.S., presented Thursday night to a joint session of Congress, failed to brighten the demand outlook.

October natural gas also ended the day lower, falling to $3.915 per thousand cubic feet. Gas futures fluctuated from $3.885 to $3.99 during Friday's floor trading.

Front-month gasoline settled at $2.77 a gallon, slightly higher than the $2.76 intraday low. October gasoline peaked at $2.89 Friday.

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Commodity Corner: Oil Follows Stocks' Lead

- Commodity Corner: Oil Follows Stocks' Lead

Wednesday, September 07, 2011
Rigzone Staff
by Matthew V. Veazey

Thanks to a German court ruling supporting bailouts in the euro-zone, world equities markets posted healthy gains Wednesday. The WTI and Brent crude oil benchmarks followed suit.

Light sweet crude oil for October delivery gained nearly four percent to end the day at $89.34 a barrel. Brent, meanwhile, climbed 2.7 percent to settle at $115.80 a barrel. Buoying stock markets on both sides of the Atlantic as well as Asia was the German Constitutional Court's rejection of an attempt to block German involvement in bailouts of other euro-zone countries.

The Dow Jones Industrial Averaged gained nearly 2.5 percent while the S&P 500 and Nasdaq rose by 2.86 percent and 3.04 percent, respectively. In Europe, the London-based FTSE 100 finished more than 3.1 percent higher and the CAC 40 in Paris gained 3.63 percent. Major exchanges in Shanghai, Tokyo, and Hong Kong posted more modest increases.

The WTI traded within a range from $86.15 to $89.74 while the Brent contract price fluctuated from $112.81 to $115.98.

Natural gas for October delivery managed to break the $4.00 mark, peaking at $4.04 per thousand cubic feet. The midweek momentum faded by the close of floor trading, however, with the front-month contract settling at $3.94 for the second straight day.

October natural gas bottomed out at $3.90 Wednesday.

The price of a gallon of gasoline gained nearly nine cents to settle at just under $2.91, also the intraday high. The price floor during Wednesday's trading was $2.82.

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Commodity Corner: Oil Edges Lower on Econ Woes

- Commodity Corner: Oil Edges Lower on Econ Woes

Tuesday, September 06, 2011
Rigzone Staff
by Saaniya Bangee

Light, sweet oil edged lower Tuesday on lingering concerns about the global economy.

Oil futures traded 43 cents lower at $86.02 a barrel on the New York Mercantile Exchange.

Concerns that the European debt crisis might worsen pushed prices and equities lower Tuesday. Traders worry that the economic plague could spread to neighboring countries.

Prices fell as low as $83.20 a barrel in intraday trading as U.S. stock indexes plummeted for a third consecutive session. They peaked at $86.50. Earlier today, the Dow Jones Industrial Average fell 308 points but rebounded after the Greek government indicated swifter economic reforms.

Traders are waiting to take cues from President Obama and the Federal Reserve's speech later this week.

Brent crude, which is used to price many international oil varieties, gained $2.81 Tuesday to settle at $112.89 a barrel. Brent took its cues from production problems in the North Sea and a continued absence of Libyan oil in the market.

Likewise, natural gas for October delivery added 6.6 cents to settle at $3.94 per thousand cubic feet. Prices fluctuated between $3.85 and $3.95 Tuesday.

The U.S. National Hurricane Center reported that a new weather system west-southwest of the Cape Verde Islands had a 90 percent chance of becoming a cyclone in the next 48 hours.

After trading between $2.77 and $2.84, front-month gasoline lost 1.7 cents to settle down at $2.82 a gallon.

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Commodity Corner: Oil Falls Amid Softer Demand Outlook

- Commodity Corner: Oil Falls Amid Softer Demand Outlook

Friday, September 02, 2011
Rigzone Staff
by Matthew V. Veazey

Light sweet crude oil for October delivery lost nearly three percent Friday after the U.S. Department of Labor announced that the U.S. economy added zero jobs last month.

The WTI settled at $86.45 a barrel, a $2.48 day-on-day decline, after the Labor Department reported that the loss of 17,000 government jobs in August offset the addition of the same number of private-sector jobs during the period. According to media outlet MSNBC, the government last reported zero job growth 66 years ago. The Labor Department also announced that the unemployment rate held steady at 9.1 percent.

The unimpressive employment figures support the view that the U.S. economy is experiencing a double-dip recession, lowering expectations for oil demand.

Brent futures also ended the day lower, losing 1.7 percent to settle at $112.33 a barrel. The benchmark traded within a range from $111.57 to $113.51. The WTI peaked at $88.99 and bottomed out at $85.42.

By noon Friday, one-third of Gulf of Mexico natural gas production had been shut-in as Tropical Storm Lee ambled toward the Louisiana coastline. That was not enough to counter the aforementioned dismal economic prospects, however; October natural gas lost more than four percent Friday to settle at $3.87 per thousand cubic feet.

Front-month natural gas fluctuated from $3.85 to $4.065 during floor trading. Reformulated gasoline for October delivery lost a nickel to end the day at $2.84 a gallon after trading within a range from $2.795 to $2.90.

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Commodity Corner: Ben, Irene Contribute to Volatility

- Commodity Corner: Ben, Irene Contribute to Volatility

Friday, August 26, 2011
Rigzone Staff
by Matthew V. Veazey

The price of a barrel of light sweet crude oil experienced some volatility Friday before settling at $85.37, or just seven cents day-on-day.

The WTI fell as low as $82.95 after Federal Reserve Chairman Ben Bernanke, speaking at a symposium in Jackson Hole, Wyo., did not announce any Fed plans to launch a third round of quantitative easing. A "QE3" would be bullish for oil and other commodities because it would weaken the U.S. dollar.

Hurricane Irene's pending arrival along the East Coast did create upward momentum for the benchmark, however. The WTI peaked at $85.64 as investors weighed the possible effects the storm may have on refining infrastructure and gasoline supplies in the Mid-Atlantic and Northeast.

The Brent contract price also settled higher Friday, gaining 74 cents to end the day at $111.36 a barrel. It traded within a range from $109.38 to $111.65.

Despite Irene's potential impact on East Coast fuel supplies, reformulated gasoline lost four cents to settle at $2.93 a gallon. The U.S. Coast Guard's lack of a decision during floor trading to close New York Harbor prevented a bullish outcome Friday.

September gasoline peaked at $2.98 and bottomed out at $2.91 during the pre-storm session.

Natural gas for September delivery settled flat at $3.93 per thousand cubic feet. It fluctuated from $3.90 to $3.96.

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Commodity Corner: Irene Supply Fears Propel Oil, Gasoline

- Commodity Corner: Irene Supply Fears Propel Oil, Gasoline

Thursday, August 25, 2011
Rigzone Staff
by Matthew V. Veazey

Light sweet crude oil gained 14 cents Thursday amid fears that Hurricane Irene could diminish gasoline supplies along the East Coast.

The WTI ended the day at $85.30 a barrel after fluctuating from $83.01 to $86.56. The major hurricane, which is expected to hit North Carolina's Outer Banks Saturday evening, could cause widespread power outages, flooding, and wind damage from the Carolinas to New England. Six refineries with approximately 1.3 million barrels of processing capacity lie within the storm's projected path. Pipelines and terminals serving those facilities could also be impaired should Irene remain on her current track.

As of 5 p.m. EDT Thursday, Hurricane Irene was packing maximum sustained winds of 115 miles per hour. The storm, centered over the Bahamas at press time, was moving north-northwestward at 14 mph.

The Brent contract price also settled higher Thursday, gaining 47 cents to end the day at $110.62 a barrel. It peaked at $111.38 and bottomed out at $109.05.

Buoyed by the threat of Irene, gasoline for September delivery rose nine cents to end the day at $2.97 a gallon. It traded within a range from $2.88 to 2.97.

September natural gas edged upward by one cent to settle at $3.93 per thousand cubic feet. The front-month contract fluctuated from $3.87 to $3.98.

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Commodity Corner: Late Selloff Pushes WTI Downward

- Commodity Corner: Late Selloff Pushes WTI Downward

Wednesday, August 24, 2011
Rigzone Staff
by Matthew V. Veazey

Light sweet crude oil on the New York Mercantile Exchange benefited from bullish U.S. inventory data for much of the day Wednesday, but a selloff late in the midweek session resulted in 28-cent day-on-day loss.

The WTI ended the day at $85.16 a barrel after receiving a boost for much of the day from the latest oil stocks figures from the U.S. Energy Information Administration (EIA). EIA reported Wednesday that U.S. commercial crude oil inventories fell by 2.2 million barrels last week to 351.8 million barrels. Analysts surveyed by Platts had expected a 2 million-barrel build, rather than a draw, for the period.

Light sweet crude peaked at $86.59 and bottomed out at $84.55 Wednesday.

The Brent contract price did manage to settle higher Wednesday, gaining 38 cents to finish at $110.15 a barrel. Brent traded within a range from $109.20 to $110.96.

After Tuesday's East Coast earthquake rattled nerves and contributed to a spike in natural gas futures, Wednesday's relative geologic calm in the U.S. helped the front-month price return to negative territory. The September contract lost seven cents to end the day at $3.92 per thousand cubic feet.

Natural gas fluctuated from $3.91 to $4.03 Wednesday.

Reformulated gasoline for September delivery remained flat at $2.88 a gallon Wednesday after trading from $2.85 to $2.91.

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Commodity Corner: Brent Falls on Libyan Woes

- Commodity Corner: Brent Falls on Libyan Woes

Monday, August 22, 2011
Rigzone Staff
by Saaniya Bangee

With Libya's six-month conflict nearing an end, crude futures rose 2.3 percent Monday. On Monday, Libyan rebels announced they had taken control of a majority of the country's capital, advancing in efforts to oust leader Moammar Gadhafi.

Light, sweet crude for September delivery gained $1.86 to settle at $84.12 a barrel. Priced traded as low as $81.13 a barrel, after an earlier intraday peak of $84.67. The front-month contract expired at the end of the floor trading session.

Brent, which serves as a barometer for international oil, fell 36 cents on expectations that Libyan oil exports could resume fairly soon. Prior to the civil war, Libya exported 1.3 million barrels a day of high-quality oil. Supply disruptions in Libya and the North Sea have pushed Brent futures past the $100-mark this year. Earlier in the session, Brent futures bottomed out at $105.15 a barrel before settling at $108.26 a barrel.

September natural gas traded 5.1 cents lower at $3.89 per thousand cubic feet Monday on bearish weather forecasts. Forecasts predict a significant drop in temperatures for the upcoming weeks. Higher temperatures boost the demand for natural gas.

In addition, forecasts predict that Hurricane Irene, the first hurricane of this year's Atlantic hurricane season, is unlikely to disrupt vital production areas in the Gulf of Mexico.

The intraday range for natural gas was $3.853 to $3.928 Monday.

Reformulated gasoline blendstock, or RBOB, lost less than a penny Monday to settle at $2.835 a gallon.

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Commodity Corner: Oil Ends Week Lower

- Commodity Corner: Oil Ends Week Lower

Friday, August 19, 2011
Rigzone Staff
by Saaniya Bangee

Light, sweet crude posted a slight loss Friday, pressured by yesterday's bearish stock sell-off, as well as a series of negative economic data.

Oil futures ended the week 12 cents lower, settling at $82.26 a barrel Friday and down 3.7 percent for the week. Oil prices traded as low as $79.17 after an earlier intraday peak of $83.55, which was caused by an early rise in the stock market.

Crude gained some support Friday from a weaker dollar. The Dollar Index, which measures the dollar against a basket of major foreign currencies, traded at 74.002 from 74.216. The greenback reached a new post-World War II low against the Japanese yen.

Meanwhile, the September Brent contract price settled $1.63 higher at $108.62 a barrel. The intraday range for Brent was $106.43 to $109.30 a barrel.

Natural gas for September delivery gained nearly 5 cents, or 1.2 percent, to settle at $3.94 per thousand cubic feet. Natural gas fluctuated between $3.90 and $3.97 for the last trading session of the week.

Front-month gasoline advanced 5.80 cents to finish at $2.84 a gallon Friday. RBOB rose for a second straight week.

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Commodity Corner: Oil Plummets 5.9 Percent

- Commodity Corner: Oil Plummets 5.9 Percent

Thursday, August 18, 2011
Rigzone Staff
by Saaniya Bangee

A broad sell-off in stocks triggered recession fears Thursday, reversing crude's upward move yesterday.

Light, sweet crude futures dove nearly 6 percent Thursday to end the day at $82.38 a barrel. Futures settled as low as $81.15 a barrel. Lingering concerns over the global economy have pressured oil prices to decline 14 percent this month.

A Philadelphia Federal Reserve survey showed that factory activity in the Mid-Atlantic region weakened to its lowest level in more than two years. In addition, the U.S. Labor Department said initial unemployment benefits rose by 9,000 to 408,000 for the week ending Aug. 13.

Existing homes sales declined by 3.5 percent in July, marking an 8-month low, the National Association of Realtors reported.

Brent crude also settled lower at $107.05 a barrel on the ICE futures exchange, down $3.55 a barrel.

Natural gas for September delivery settled lower 4.1 cents at $3.89 per thousand cubic feet on an increase in U.S. stockpiles. The Energy Information Administration said inventories for natural gas grew by 50 billion cubic feet for the week ended Aug. 12. According to the reports, stockpiles were 2.5 percent below the 5-year average and 5.8 percent below 2010 levels.

A tropical wave identified approximately 200 miles east-northeast of Nicaragua has an 80 percent chance of becoming a cyclone over the next 48 hours, the U.S. National Hurricane Center reported.

The intraday range for natural gas was $3.843 to $3.92 Thursday.

September gasoline lost 3 percent Thursday settling at $2.78 a gallon. Gasoline prices fluctuated between $2.76 and $2.879 a gallon.

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Commodity Corner: Oil Rises on Bullish Gasoline Stocks

- Commodity Corner: Oil Rises on Bullish Gasoline Stocks

Wednesday, August 17, 2011
Rigzone Staff
by Saaniya Bangee

Light, sweet futures held gains of almost 2 percent Wednesday after the EIA reported a sharp decline in U.S. gasoline inventories.

September crude gained nearly a dollar to settle at $87.58 per barrel on the New York Mercantile Exchange. Its European counterpart settled at $110.60 a barrel, up $1.47.

The U.S. Energy Information Administration (EIA) reported a higher than expected drop in gasoline stockpiles, pushing oil prices higher early on in Wednesday's trading session. The EIA said gasoline stockpiles declined by 3.5 million barrels last week to 210.1 million barrels. An increase in gasoline demand suggests refineries require more oil. Meanwhile, the market pared gains when the EIA reported an increase of 4.23 million barrels in oil inventories.

Benchmark West Texas Intermediate traded between $86.65 and $89.00 Wednesday. Brent benchmark peaked at $111.74—the highest since Aug. 4.

In other NYMEX trading, front-month natural gas futures settled at $3.93 per thousand cubic feet after fluctuating between $3.89 and $3.98 Wednesday. Gasoline for September delivery gained 1.65 cents ending the session at $2.89 a gallon. Reformulated gasoline traded as high as $2.93 and as low as $2.86 Wednesday.

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Commodity Corner: Crude Rallies Along with Equities

- Commodity Corner: Crude Rallies Along with Equities

Monday, August 15, 2011
Rigzone Staff
by Matthew V. Veazey

Light sweet crude oil for September delivery gained $2.50 Monday to settle at $87.88 a barrel.

Rallies in equities markets worldwide, coupled with a weaker dollar, propelled oil futures forward. Major merger announcements Monday by heavyweights such as Google and Transocean helped the Dow Jones Industrial Average and S&P 500 to finish the day 1.9 percent and 2.18 percent higher, respectively.

The U.S. Dollar, meanwhile, weakened against other major currencies after a monthly Federal Reserve Bank of New York report showed worsening business conditions in the Empire State. A weaker greenback makes dollar-denominated crude oil a better buy for investors holding other currencies. The New York Fed's survey revealed falling orders, decreasing prices, plunging capital expenditures, and a future general business conditions index hitting its lowest point since February 2009.

The WTI peaked at $88.05 and bottomed out at $84.40. Brent futures settled at $109.91 a barrel, a $1.88 day-on-day gain and four cents shy of Monday's intraday high. The September Brent contract fell to $108.20 earlier in the session.

Thanks in part to milder temperatures in much of the U.S., August natural gas futures lost four cents to settle at $4.02 per thousand cubic feet. The front-month contract price fluctuated from $3.95 to $4.06.

The price of a gallon of reformulated gasoline gained a nickel to end the day at $2.87. August gasoline traded within a range from $2.81 to $2.88.

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Commodity Corner: WTI Slips; Brent Edges Upward

- Commodity Corner: WTI Slips; Brent Edges Upward

Friday, August 12, 2011
Rigzone Staff
by Matthew V. Veazey

Light sweet crude oil for September delivery surged above $87 Friday but settled well below that on mixed economic news.

The WTI received a boost for much of the day after the U.S. Department of Commerce's Census Bureau on Friday announced that retail sales increased 0.5 percent last month. Moreover, the bureau revised upward sales figures for both May and June by 0.2 percent. In addition, it reported that sales at gasoline stations rose by 1.6 percent in July.

"Consumer spending reflects the confidence of the American people, and despite recent economic turbulence, we're still seeing widespread growth in spending," Acting Commerce Secretary Rebecca Blank said in a written statement.

The WTI peaked at $87.37 a barrel but settled at $85.38, a 34-cent day-on-day loss, after Thomson Reuters and the University of Michigan reported dramatically lower preliminary consumer confidence figures. The sources' widely observed measure of consumer sentiment plunged 13.8 percent from July to August, hitting its lowest point in 31 years.

The WTI peaked at $87.37 and bottomed out at $84.02.

Brent futures eked out a slight, one-cent gain to end the day at $108.03 a barrel after trading within a range from $107.72 to $108.90.

The consumer confidence news also caused front-month natural gas to end the day lower. The September contract price lost a nickel to settle at $4.06 per thousand cubic feet. Natural gas futures fluctuated from $4.14 to $4.055.

September reformulated gasoline lost less than a penny to settle at $2.82 a gallon. The intraday range for gasoline was $2.81 to $2.86.

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Commodity Corner: Oil Rallies on Market Rebound

- Commodity Corner: Oil Rallies on Market Rebound

Thursday, August 11, 2011
Rigzone Staff
by Saaniya Bangee

Soaring to its highest all week, NYMEX crude rallied Thursday as U.S. equities opened higher and the Labor Department reported positive job data.

Front-month crude oil futures gained 3.4 percent, or $2.83, to settle at $85.72 a barrel. Likewise, Brent crude also advanced, settling up $1.34 at $108.02 a barrel.

Following the worst plunge in almost a year, U.S. stocks opened higher Thursday. The S&P 500 advanced 4.6 percent, while the Dow Jones Industrial Average increased by 3.9 percent in New York.

According to the U.S. Labor Department, the number of initial unemployment claims fell by 7,000 to a seasonally adjusted 395,000, marking a four-month low.

The intraday range for WTI was $81.03 to $85.97 and $104.51 to $108.19 for its European counterpart.

Natural gas for September delivery traded up 10 cents to $4.11 per thousand cubic feet. The September contract price for natural gas fluctuated between $3.94 and $4.14 Thursday.

The Energy Information Administration said stockpiles grew by 25 billion cubic feet in the week ended Aug. 5.

Two of three low-pressure systems in the Atlantic have a 40 percent chance of forming into a tropical cyclone, reported the U.S. National Hurricane Center.

Reformulated gasoline blendstock held on to yesterday's gains settling up 4.48 cents at $2.83 a gallon. Prices peaked at $2.839 and bottomed out at $2.745 Thursday.

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Commodity Corner: WTI, Brent Rebound

- Commodity Corner: WTI, Brent Rebound

Wednesday, August 10, 2011
Rigzone Staff
by Matthew V. Veazey

Light sweet crude oil on the New York Mercantile Exchange rebounded Wednesday after the U.S. Department of Energy reported that inventories fell last week, catching investors off-guard.

The September WTI contract price gained $3.59 to settle at $82.89 a barrel. The Energy Information Administration (EIA) announced that commercial crude stocks declined by 5.2 million barrels last week to 349.8 million barrels. The 1.5-percent week-on-week draw starkly contrasted to the prediction of a Platts survey of analysts: a 1.8 million-barrel build for the period.

Brent futures also surged Wednesday, settling $4.11 higher at $106.68 a barrel. The WTI traded within a range from $79.53 to $82.90. The contract price for Brent fluctuated from $103.47 to $106.55.

EIA also reported Wednesday that reformulated gasoline inventories declined by a larger-than-expected volume last week: 1.6 million barrels. The 213.6 million barrel EIA figure for the week ending August 5, 2011, was 400,000 barrels below what a Platts survey of analysts had projected.

Front-month gasoline gained 11 cents to end the day at $2.78 a gallon. The September contract price peaked at $2.79 and bottomed out at $2.68.

Natural gas for September delivery edged upward by less than a penny to settle at $4.00 per thousand cubic feet. The contract price fluctuated from $3.98 to $4.08.

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Commodity Corner: Crude Slips Below $80

- Commodity Corner: Crude Slips Below $80

Tuesday, August 09, 2011
Rigzone Staff
by Saaniya Bangee

Crude oil futures extended losses Tuesday after the Federal Reserve said risks to the economic outlook have increased.

Light, sweet crude continued to retreat on the New York Mercantile Exchange Tuesday settling at $79.30 a barrel, down $2.01. For the first time in nearly 10 months, crude prices settled below $80 a barrel.

The Fed failed to ease fears as Chairman Ben S. Bernanke and his colleagues promised to extend the benchmark interest rate for another two years but stopped short of initiating an additional round of economic stimulus.

In separate monthly reports, the U.S. Energy Information Administration (EIA) and OPEC cut demand forecasts for 2011. The EIA cut its 2011 world demand growth forecast by 60,000 barrels per day (bpd). It raised its 2012 projections to 1.64 MMbpd. Meanwhile, OPEC cut oil demand growth for this year by 150,000 bpd and 20,000 bpd for next year.

The intraday range for crude was $75.71 to $83.05 a barrel.

At its lowest close since Feb. 18, Brent futures lost $1.17 to end Tuesday's trading session at $102.57 a barrel. Prices traded as low as $99.06 and as high as $105.81 Tuesday.

Gasoline for September delivery settled 2.4 cents lower at $2.67 a gallon Tuesday. The EIA reported a 2 percent decline in gasoline demand over the summer-driving season, pushing prices as low as $2.59. The intraday high for gasoline was $2.76.

Conversely, natural gas futures gained 5.9 cents, or 1.5 percent, settling at $3.99 per thousand cubic feet. Natural gas futures pushed past the $4-mark Tuesday, peaking at $4.04 and bottoming out just below $3.89. High temperatures continue to support gains.

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Commodity Corner: WTI, Brent Futures Plummet

- Commodity Corner: WTI, Brent Futures Plummet

Monday, August 08, 2011
Rigzone Staff
by Matthew V. Veazey

On the first trading day after Standard & Poor's downgraded the United States' long-term credit rating from AAA to AA+, the WTI settled at its lowest point in nearly nine months.

Light sweet crude oil lost $5.57 to end the day at $81.31 a barrel—just six cents higher than the Nov. 23, 2010, settlement price. Concerns that the U.S. is slipping into a double-dip recession have dampened expectations about oil demand. Equity markets also sustained significant losses Monday. The Dow Jones Industrial Average fell 5.55 percent while the S&P 500 declined nearly 6.7 percent.

The Brent futures price also plunged Monday but to a somewhat more modest degree than the WTI. It ended the day at $103.47, marking a $5.63 decline from Friday.

The WTI peaked at $85.73 and bottomed out at $80.17 while the Brent traded within a range from $102.88 to $106.92.

Also reflecting fears about slumping demand was the price of gasoline for September delivery, which lost 4.1 percent to end the day at $2.69 a gallon. Front-month gasoline traded within a range from $2.80 to $2.67 Monday.

September natural gas remained relatively steady Monday, losing less than one cent to settle at $3.935 per thousand cubic feet. Natural gas peaked at $3.97 and bottomed out at $3.855.

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Commodity Corner: Oil Takes a Wild Ride

- Commodity Corner: Oil Takes a Wild Ride

Friday, August 05, 2011
Rigzone Staff
by Matthew V. Veazey

After settling at its lowest point in six months Thursday, light sweet crude oil for September delivery managed to eke out a small gain for the day.

The WTI settled at $86.88 a barrel, representing a 25-cent day-on-day increase, after a volatile trading session. The benchmark plunged to an intraday low of $82.87 on escalating debt crisis fears within the eurozone.

Italy is the latest EU country to risk defaulting on its massive public debt. Making debt service less manageable is Italy's stagnant economic growth rate. A possible Italian bailout, along with other debt restructuring initiatives elsewhere in the eurozone, has caused the region's currency to lose value; in this situation, dollar-denominated crude oil becomes a less attractive buy for investors holding the euro.

Investor sentiment brightened later Friday, however, amid reports that Italy's government plans to take steps to jump-start economic growth. The economic liberalization program reportedly includes measures such as amending the country's constitution to require a balanced budget, loosening certain employment rules, and accelerating the pace of entitlement reform.

Also giving oil a boost Friday was a U.S. Labor Department report stating that non-farm payrolls increased by 117,000 last month, beating economists' expectations. Also, the agency announced that the official unemployment rate edged downward in July by 0.1 percentage point to 9.1 percent.

The WTI peaked at $86.88 Friday. The September Brent contract price gained $2.12 to end the day at $109.37 a barrel. It fluctuated from $105.69 to $109.90.

Natural gas for September delivery ended the day flat at $3.94 per thousand cubic feet. It traded within a range from $3.90 to $3.98.

September gasoline climbed nearly seven cents to end the day at $2.805 a gallon. The front-month contract peaked at $2.82 and bottomed out at $2.68.

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Commodity Corner: Crude Dives to 6-Month Low

- Commodity Corner: Crude Dives to 6-Month Low

Thursday, August 04, 2011
Rigzone Staff
by Saaniya Bangee

Crude oil futures plunged nearly 6 percent Thursday to its lowest settlement since February. Prices pushed lower $5.30, marking the largest one-day drop since May 5, as equity markets sold off.

Light, sweet crude settled at $86.63 a barrel on the New York Mercantile Exchange (NYMEX), down for the fifth consecutive session. Its counterpart settled at $107.25 a barrel amid Europe's sovereign debt crisis. Brent crude traded within a range of $107.05 and $113.60 Thursday.

Largely steered by growing concern that the U.S. economy is experiencing a double-dip recession, equity markets sold-off sharply mid-day Thursday pushing prices further. In addition, the greenback gained against the euro Thursday as the Dollar Index rose by almost 1.5 percent. As the greenback rises, the dollar-denominated commodities becomes expensive for foreign buyers.

Likewise, natural gas futures also tumbled Thursday falling below the $4-mark for the first time since March. Front-month natural gas lost nearly 15 cents to settle at $3.94 per thousand cubic feet. The Energy Information Administration said U.S. natural gas inventory increased by 44 billion cubic feet for the week ended July 29.

Meanwhile, moderate temperature forecasts didn't give the market much support either. Also, the National Hurricane Center reported that Tropical Storm Emily isn't headed toward the Gulf of Mexico.

The intraday range for natural gas was $3.915 to $4.119 per thousand cubic feet.

Gasoline for September delivery dropped 19.41 cents, or 6.6 percent, to end Thursday's trading session at $2.74 a gallon, having traded as low as $2.728 after an earlier intraday peak of $2.94.

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