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: 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 Drops 1.2% on Econ Woes

- Commodity Corner: Oil Drops 1.2% on Econ Woes

Tuesday, August 02, 2011
Rigzone Staff
by Saaniya Bangee

Crude oil futures continued to retreat Tuesday as economic concerns weighed on the market.

At its lowest in more than a month, light, sweet crude settled lower at $93.79 a barrel, down $1.10 from yesterday. Tuesday's trading session reached lows last seen on June 28.

Early Tuesday, a U.S. Commerce Department report showing a drop in consumer spending for the first time in nearly two years weighed down oil prices. The report also showed that incomes barely rose for the month of June.

Analysts believe that the series of negative economic data is overshadowing the U.S. deficit-cutting package.

The Brent contract traded between $115.77 and $118.36, before settling at $116.46 a barrel on the ICE Futures exchange in London. The 35-cent day-on-day drop came on supply disruptions in the North Sea and a refinery fire in Taiwan.

Futures for September natural gas decreased 3.3 cents Tuesday, closing at $4.155 per thousand cubic feet. According to the National Hurricane Center, the Caribbean's latest storm Tropical Storm Emily could pick up strength in a day or two; but, as of now, the storm poses a low threat to the Gulf's output. Approximately 7.4 percent of the U.S. natural-gas production lies in the Gulf of Mexico.

Natural gas prices fluctuated between $4.135 and $4.23, maintaining a similar trading range to Monday's session.

Gasoline blendstock for September delivery dropped for a fifth consecutive session, closing at $3.04 a gallon.

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