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Showing posts with label Falls. Show all posts
Showing posts with label Falls. Show all posts

Friday, September 9, 2011

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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Friday, September 2, 2011

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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Monday, August 22, 2011

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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Monday, August 8, 2011

Basic Energy's Rig Utilization Falls

- Basic Energy's Rig Utilization Falls



Aug 8, 2011

Basic Energy Services Inc.(NYSE:BAS) reported Monday that its July well servicing rig utilization rate fell slightly to 73% from 74% in the prior month.

The number of well servicing rigs stayed unchanged at 412 as of July 31, but rig hours fell to 69,000 from 73,600 the month before.

The count for drilling rigs remained at 10, but drilling rig days climbed to 279 from 256 in June. Drilling utilization rose to 90% from 85% in June.

Basic's fluid services truck fleet increased to 871 by the end of the period from 838 at the end of June.

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Tuesday, August 2, 2011

Petroceltic's AT-5 Well Falls Short of Expectations

- Petroceltic's AT-5 Well Falls Short of Expectations

Tuesday, August 02, 2011
Petroceltic International Inc.

Petroceltic in association with its partner Sonatrach issued an update on operations at the Ain Tsila field on its Isarene permit (Blocks 228 & 229a) in south eastern Algeria.
  • AT-5 tests gas at a maximum flow rate of 3.50mmscfd
  • AT-7 and AT-8 wells spudded
  • AT-9 well approved for drilling
  • Delineation program on schedule for year end completion

AT-5 Well Test

The AT-5 well was drilled with a 376m of horizontal section through a "pop-up" feature in the Ordovician reservoir at a location about 4km to the east of the AT-1 discovery well. A multistage open hole packer completion with four zone isolation ports was successfully run before the well was suspended for rigless testing. All four zones were then fracture stimulated ("fracked") and a maximum flow rate of 3.50mmscf/d on a 64/64" choke with 60 bbl/d of condensate and 190 bbl/d of water was achieved. While the flow rate is lower than pre-test expectations, this is the third of four wells tested in the Ain Tsila discovery to flow at rates that are likely to be deemed commercial.

Upon completion of the operations at the AT-5 site, the rigless testing unit will be mobilized to the AT-6 location to commence testing operations there. The testing program at AT-6 is expected to be completed in the first half of September.

Appraisal Drilling Update

Well AT-7, which is being drilled by the Dalma rig and is located in the south west of the field outside the 3D seismic survey approximately 10km south of the AT-3 well, commenced drilling on 26th July. It is designed as a vertical well to test the south westerly extension of the field and will be the 4th well in the current campaign.

Well AT-8 which is being drilled by the KCA Deutag rig started drilling on 19th July. This well is being drilled as a vertical well into a "pop-up" feature in the north of the field. The objective of the well is to further delineate the northern part of the field and test a potential fracture zone associated with a seismically mapped fault which may facilitate enhanced productivity rates. It will be the 5th well in the current campaign.

The Algerian Authorities have also recently approved the drilling of the 6th well, AT-9. This well will be the second well with the KCA Deutag rig following completion of drilling operations at AT-8. It is located in the center of the field between wells AT-1 and AT-2 and will be drilled as a horizontal well designed to test a structurally different style of "pop-up" with seismically interpreted fractures and faults.

With the addition of the second rig, the current six well delineation program will be completed by year end to allow for the preparation of the Final Discovery Report for submittal to the Algerian authorities by the end of Q1 2012.

Petroceltic operates the permit with a 56.625 % interest, Sonatrach holds a 25% interest, and Enel holds 18.375% interest, pending final Government of Algeria ratification.

Brian O'Cathain, Chief Executive of Petroceltic commented, "While we are disappointed that the AT-5 flow rates did not meet our pre-test expectations, the well has achieved a commercial flow and provided important operational data in respect of the future design, drilling and testing of appraisal and development wells in the AinTsila Field. This is the third of the four wells tested to date to flow commercial rates of gas and further demonstrates the extent and scale of the discovery.

"Operational activity is now at a peak with two rigs and a rigless testing unit currently active in the field and we await with interest the results of the remaining wells in this current campaign."

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Wednesday, July 27, 2011

Commodity Corner: Oil Falls on EIA Stocks Report

- Commodity Corner: Oil Falls on EIA Stocks Report

Wednesday, July 27, 2011
Rigzone Staff
by Matthew V. Veazey

U.S. commercial crude oil inventories as reported by the Energy Information Administration reversed course last week, catching analysts off-guard and contributing to lower oil prices Wednesday.

Light sweet crude oil for September delivery lost 36 cents to settle at $97.40 a gallon after the EIA reported that oil stocks rose 0.65 percent last week to 354 million barrels. The 2.3 million-barrel week-on-week build contrasted with analysts' expectations; interestingly, analysts surveyed by Platts had predicted a draw of 2.3 million barrels for the period.

Prior to Wednesday's report, EIA had reported seven straight weeks of falling inventories. From May 27 to July 15, oil stocks reportedly declined by 5.9 percent. The Brent benchmark lost 85 cents to end the day at $117.43 a barrel.

The WTI traded within a range from $97.28 to $99.50 while the Brent fluctuated from $117.26 to $118.34.

The newly formed Tropical Storm Don is expected to affect operations somewhat at some Western Gulf of Mexico oil and gas installations as it tracks toward the Texas coastline. However, the National Hurricane Center on Wednesday afternoon was not expecting it to intensify into a hurricane. Front-month natural gas ended the day unchanged at $4.37 per thousand cubic feet.

August natural gas futures peaked at $4.41 and bottomed out at $4.34 during the midweek session.

Gasoline lost a penny to settle at $3.14 a gallon Wednesday. The intraday range for the August contract fluctuated from $3.135 to $3.18.

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Monday, July 18, 2011

Commodity Corner: Oil Falls as Dollar Strengthens

- Commodity Corner: Oil Falls as Dollar Strengthens

Monday, July 18, 2011
Rigzone Staff
by Matthew V. Veazey

The price of light sweet crude oil declined $1.31 Monday to settle at $95.93 a barrel. The Brent benchmark also ended the day lower at $116.05 a barrel, or down $1.21 from Friday's settlement.

A stronger dollar against the euro prompted Monday's selloff as investors focused on Europe's ongoing debt woes and concerns about slackening oil demand. A stronger greenback makes dollar-denominated crude oil a less attractive buy for investors using other currencies.

The euro lost value after the European Banking Authority on Friday issued the results of its latest stress test of banks in the Eurozone. Nearly 27 percent of the 90 banks examined fared poorly in the exercise, which predicted how well they could withstand deteriorating economic conditions. Eight of the institutions examined failed the stress test outright while another 16 barely passed.

The WTI benchmark fluctuated from $94.69 to $97.69 during Monday's session while the Brent contract traded within a range from $114.76 to $116.95.

Despite a heat wave that has boosted natural gas futures recently, the front-month contract price remained unchanged at $4.55 per thousand cubic feet Monday. Natural gas peaked at $4.61 and bottomed out at $4.48.

The price of a gallon of gasoline ended the day at $3.10, a three-cent decline from Friday. The intraday range for gasoline spanned from $3.05 to $3.15.

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Friday, July 1, 2011

Commodity Corner: Oil Falls Amid Sluggish Manufacturing Data

- Commodity Corner: Oil Falls Amid Sluggish Manufacturing Data

Friday, July 01, 2011
Rigzone Staff
by Matthew V. Veazey

The price of a barrel of light sweet crude oil fell 48 cents Friday on reports of weaker demand in China and Europe.

The August WTI contract ended the day at $94.94 after the China Federation of Logistics and Purchasing reported a 1.1-percent drop in its Purchasing Managers Index (PMI) for June. The latest PMI figure of 50.9 percent marks the slowest rate of manufacturing expansion in the Chinese economy in 28 months, according to China's official news agency Xinhua.

Separately, JPMorgan and London-based Markit Economics reported Friday that PMIs throughout the eurozone fell last month. In addition, JPMorgan's Global Manufacturing PMI reportedly slipped from 53.0 in May to 52.3 in June. The new statistic represents the lowest Global PMI number—and the slowest rate of manufacturing expansion—in 23 months.

The August WTI fluctuated between $93.45 and $95.39 during pre-Independence Day trading. The Brent futures price settled at $111.77 a barrel after peaking at $111.85 and bottoming out at $109.94.

Natural gas for August delivery lost six cents to settle at $4.31 per thousand cubic feet. The intraday high and low prices were $4.39 and $4.30, respectively.

Front-month gasoline also fell by six cents, ending the day at $2.97 a gallon. The August contract traded within a range from $2.91 to $2.98

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Friday, June 24, 2011

Commodity Corner: Oil Up, Brent Falls on IEA's Decision

- Commodity Corner: Oil Up, Brent Falls on IEA's Decision

Friday, June 24, 2011
Rigzone Staff
by Saaniya Bangee

Oil futures remained nearly flat Friday as investors weighed the IEA's decision to release an emergency supply of 60 million barrels of oil. Both NYMEX and Brent crude had seen a recent surge in prices due to Libya's civil war.

Light, sweet crude added 14 cents to settle at $91.16 a barrel. Oil prices fluctuated between $89.82 and $92.34 Friday. For the week, crude prices lost $1.85, or 2 percent.

While analysts and investors assess their position on the IEA's surprise decision, Brent prices plunged $2.14 Friday. Ending the week at $105.12 a barrel, Brent futures settled at their lowest since Feb. 18. Brent, which is used in many international blends, had rallied in the wake of the unrest in Libya.

Additionally, Europe's debt problems also pressured Brent to decline Friday. The euro dropped on uncertainty of whether Greece's parliament will approve additional bailout funds.

The intraday range for ICE Brent crude was $103.62 to $108.70 a barrel.

Meanwhile, front-month natural gas gained 3.6 cents Friday, settling at $4.23 per thousand cubic feet. Prices peaked at $4.25 and bottomed out at $4.17.

Reformulated gasoline for July delivery traded between $2.76 and $2.88 to end Friday's trading session at $2.78 a gallon.

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Friday, June 10, 2011

Commodity Corner: Oil Falls on Saudi Production Report

- Commodity Corner: Oil Falls on Saudi Production Report

Friday, June 10, 2011
Rigzone Staff
by Matthew V. Veazey

The prospect of more Saudi crude on the world market and a stronger dollar contributed to a 2.6 percent dip in oil futures Friday.

Crude oil for July delivery settled at $99.29 a barrel after Saudi Arabian newspaper reported that the kingdom plans to boost oil production. The reported unilateral move by the world's largest oil exporter follows OPEC's inability earlier this week to decide on raising member countries' production quotas.

Also applying downward pressure to the oil futures price was a strengthening U.S. dollar. The Dollar Index, which gauges the value of the greenback against other major currencies, gained 0.9 percent Friday. Because oil is priced in dollars, the commodity becomes a less attractive buy for investors holding other currencies when its value increases.

Oil traded within a range from $98.79 to $102.15 Friday. Compared to the June 3 settlement price, oil is down 0.9 percent for the week.

July natural gas gained nine cents Friday to settle at $4.76 per thousand cubic feet. Thanks to weather forecast models predicting another heat wave later this month from the Midwest to the East Coast, demand for natural gas to generate electricity to power air conditioners is expected to soar.

Front-month natural gas fluctuated from $4.66 to $4.77, and the July contract price is up 1.1 percent for the week.

July gasoline lost two cents to end the day at $3.02 a gallon. The gasoline futures price peaked at $3.05 and bottomed out at $2.98 during Friday's trading. For the week, gasoline is up one percent.

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Wednesday, June 1, 2011

Santos' Evans Shoal Sale Falls Through

- Santos' Evans Shoal Sale Falls Through

Wednesday, June 01, 201
Santos Ltd.

Santos announced in March 2010 that it had agreed to sell its 40% working interest in NT/P 48 (Evans Shoal) in the Bonaparte Basin to Magellan Petroleum Australia Limited.

Santos today announced that the sale transaction will not complete because the conditions to completion have not been satisfied by the May 31, 2011 deadline.

Santos therefore will retain its 40% interest in NT/P 48 and will remain as operator of the permit. Santos will also retain a $15 million non-refundable deposit paid by Magellan.

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Monday, May 23, 2011

Commodity Corner: Oil Falls on EU, China Fears

- Commodity Corner: Oil Falls on EU, China Fears

Monday, May 23, 2011
Rigzone Staff
by Matthew V. Veazey

The July contract price for a barrel of crude oil fell to $97.70 a barrel Monday.

Monday's selloff occurred as the dollar strengthened amid fears of a spreading debt crisis in the European Union. Stoking concerns was Standard and Poor's decision to revise Italy's credit outlook from stable to negative. The Dollar Index, which gauges the value of the U.S. Dollar against a basket of other major world currencies, rose 0.93 percent Monday. Priced in dollars, oil becomes a less attractive value for investors holding other currencies.

Also contributing to the lower oil price was a report by HSBC that manufacturing growth in China hit its lowest point in nine months in April. The bank, in releasing its latest Purchasing Managers Index (PMI) report, observed that new order growth in China is below the long-run trend.

July crude oil peaked at $100.04 and bottomed out at $96.37 during Monday's session.

Weather forecasters expect Americans in the southern and eastern regions of the U.S. to experience hotter-than-normal temperatures through next week. As a result, demand for air conditioning—and the natural gas used to generate electricity—is expected to strengthen during the period.

Front-month natural gas gained 12 cents Monday to settle at $4.35 per thousand cubic feet. June natural gas traded within a range from $4.22 to $4.38.

The June gasoline contract price remained flat at $2.94 a gallon Monday. It fluctuated from $2.87 to $2.955.

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Thursday, May 19, 2011

Commodity Corner: Oil Falls on Weak Economic Data

- Commodity Corner: Oil Falls on Weak Economic Data

Thursday, May 19, 2011
Rigzone Staff
by Saaniya Bangee

Oil prices fell below the $100-mark Thursday on weak economic reports.

Front-month crude lost $1.66, settling at $98.44 a barrel Thursday. At its quarterly meeting, the International Energy Agency (IEA) urged oil producers to increase supply. The agency, which acts as a watchdog for 28 industrialized nations, claimed that the high oil prices are hindering global economic recovery. Additionally, the Conference Board reported an unexpected decline in April's index of U.S. leading economic indicators. This marks the first decline in nearly a year.

Other U.S. economic data showed a decrease in home sales for the month of April while Mid-Atlantic manufacturing activity barely grew in May.

Although the U.S. Department of Labor announced a decrease in unemployment filings for the second straight week, traders were unable to get past the bigger picture. Oil prices bottomed out at $98.16 Thursday.

June natural gas futures plummeted to their lowest in nearly six weeks. Prices for natural gas settled 10.4 cents lower at $4.09 per thousand cubic feet. The 2.5 percent-drop came after the Energy Information Administration (EIA) reported that inventories grew by 92 billion cubic feet for the week ended May 13, almost 11 percent lower than the previous year. As the seasonal maintenance for nuclear power plants nears its end this month, some analysts predict the size of gas inventory builds may increase over the next few weeks.

The intraday range for natural gas was $4.09 to $4.20 Thursday.

RBOB gasoline prices fell by 2.95 cents Thursday. Prices traded within $2.91 to $3.00, before settling at $2.93 a gallon.

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Monday, April 11, 2011

Commodity Corner: Oil Falls on Lower GDP Forecasts

Commodity Corner: Oil Falls on Lower GDP Forecasts

Monday, April 11, 2011
Rigzone Staff
by Matthew V. Veazey

Crude oil for May delivery fell 2.5 percent Monday to $109.92 a barrel after the International Monetary Fund (IMF) lowered its projections for real gross domestic product growth this year.


The IMF anticipates world GDP to increase by 4.4 percent this year, compared to 5.0 percent for 2010. In addition, the organization expressed concerns about high unemployment and commodity prices, along with the need to advance fiscal and financial repair and reform measures—particularly in the U.S. "To make a sizable dent in the projected medium-term deficits, broader measures such as Social Security and tax reforms will be essential," the IMF stated in regard to fiscal consolidation and entitlement reforms in the U.S.

Also in the case of the U.S. economy, the IMF lowered its GDP growth rate projection for 2011 to 2.8 percent. Earlier this year, the projection was 0.2 percentage points higher.

The IMF also noted that global demand needs to be "rebalanced." To illustrate this imbalance, it pointed out that global GDP is on course to grow by 2.4 percent this year in advanced economies and a whopping 6.5 percent in emerging and developing economies. In the case of the latter group, the organization cautioned that effects of the boom—growing production approaching capacity constraints as well as large food and energy price increases pressuring wages upward—could cause these economies to overheat.

Front-month crude traded within a range from $110.05 to $113.46 Monday. The IMF report is available here

May natural gas briefly traded below the $4.00 per thousand cubic feet mark Monday—and investors treated the dip to $3.99 as a buying opportunity. By the end of the day, natural gas had surged to $4.16 before settling at $4.11. In comparison, gas settled at $4.04 on Friday.

May gasoline slipped by six cents Monday to settle at $3.20 a gallon. It peaked at $3.27 and bottomed out $3.19.