Commodity Corner: Crude Up on Weather Threat

- Commodity Corner: Crude Up on Weather Threat

Thursday, September 01, 2011
Rigzone Staff
by Saaniya Bangee

Despite shaky equities and a rising dollar, crude futures inched modestly higher Thursday on weather reports of a storm brewing in the Gulf of Mexico.

October oil added 12 cents to its final price tag, settling at $88.93 a barrel on the New York Mercantile Exchange. Oil traded as low as $88.21 a barrel after an earlier intraday peak of $89.90.

The National Hurricane Center reported an 80 percent chance that a tropical wave in the Gulf of Mexico could develop into a tropical cyclone within the next 48 hours. Oil majors such as Shell, ExxonMobil, BP, Anadarko and BP have evacuated nine platforms in the Gulf of Mexico and shut in nearly 80,000 barrels of oil production, according to the Bureau of Ocean Energy Management, Regulation and Enforcement. In addition, 127 million cubic feet per day of natural gas was also shut in.

In other forecasts, initial unemployment claims fell by 12,000 to 409,000 last week. Data reported by the Labor Department helped boost optimism about the economy.

Brent crude, which is used to price many international oil varieties, lost 56 cents to settle lower at $114.29 barrel on fresh concerns over Greece's debt problems. The intraday range for Brent was $113.89 to $115.31 a barrel on the ICE future exchange.

Natural gas for October delivery remained unchanged at $4.05 per thousand cubic feet Thursday.

Gasoline gained 1.64 cents for the first trading session for the October contract. Reformulated gasoline settled at $2.89 a gallon. Some East Coast refineries remain shut down due to Hurricane Irene. Prices fluctuated between $2.85 and $2.92 Thursday.

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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 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: 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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Oil Futures Land At Lowest In Almost 9 Months

- Oil Futures Land At Lowest In Almost 9 Months



Aug 8, 2011

Crude-oil futures on Monday settled at their lowest since late November as fear gripped markets following Standard & Poor's announcement late Friday to cut the U.S. debt ratings.

Crude for September delivery tumbled $5.57, or 6.4%, to $81.31 a barrel on the New York Mercantile Exchange -- the biggest one-day drop for a most-active oil contract since early May.

Oil had fallen 9.2% the previous week.

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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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Commodity Corner: Oil Jumps on Fear of Don

- Commodity Corner: Oil Jumps on Fear of Don

Thursday, July 28, 2011
Rigzone Staff
by Saaniya Bangee

Oil futures edged higher Thursday as Tropical Storm Don brewed in the Gulf of Mexico.

Oil trading remained choppy throughout the day Thursday with prices as high as $98.01 and as low as $96.51 a barrel. Front-month crude gained 4 cents to end the session at $97.44 a barrel.

The U.S. Labor Department said the number of claims for unemployment benefits fell to its lowest level in almost four months last week. According to the report, 398,000 people filed for unemployment benefits; this represents an increase in employment.

In its latest bulletin, the National Hurricane Center reported that Tropical Storm Don has strengthened and is headed toward the Texas coast. Oil majors ExxonMobil, Shell, BP and Anadarko have scaled back production and evacuated non-essential from several platforms in the Gulf of Mexico. Analysts predict output levels should return to normal by Saturday morning.

Traders played it safe Thursday over lingering uncertainty caused by the U.S. debt-ceiling dispute. With an Aug. 2 deadline looming, lawmakers remain deadlocked over a proposal to raise the debt limit.

The Brent benchmark fluctuated between $117.07 and $118.64 Thursday, before settling at $117.36 a barrel.

Natural gas for September delivery fell by 1.7 percent to $4.24 per thousand cubic feet Thursday, thanks to larger-than-expected stockpiles as reported by the Energy Information Administration. The EIA stated that natural gas supplies grew by 43 billion cubic feet for the week ended July 22. As of July 22, inventories were at 2.714 trillion cubic feet, down 2.3 percent from the five-year average.

The intraday range for natural gas was $4.20 to $4.34 per thousand cubic feet.

Reformulated gasoline lost 0.8 percent to settle at $3.12 a gallon. It peaked at $3.17 and bottomed out at $3.09 during Thursday's trading.

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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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Commodity Corner: Oil Crosses Century Mark

- Commodity Corner: Oil Crosses Century Mark

Friday, July 22, 2011
Rigzone Staff
by Matthew V. Veazey

Light sweet crude oil for September delivery peaked at $100.19 a barrel Friday, buoyed by news of a draft bailout plan for Greece and other debt-laden EU countries as well as optimism that the U.S. will raise its debt ceiling by August 2.

The WTI ultimately settled at $99.87, representing a 74-cent gain from Thursday. The Brent futures contract, meanwhile, gained $1.16 to end the day at $118.67 a barrel.

On Thursday, eurozone leaders emerged from a meeting in Brussels to unveil a preliminary debt restructuring plan for Greece, Portugal, Ireland, and perhaps other EU countries facing crushing sovereign debts—namely, Spain and Italy. Under the new plan, the countries will have access to European Financial Stability Facility loans at lower interest rates and will have more time—15 years or more—to repay them.

Also boosting crude oil Friday was optimism that the Obama Administration and lawmakers in the Democrat-controlled Senate and GOP-controlled House will be able to reach a deal on raising the U.S. debt ceiling from its current $14.3 trillion level. The U.S. Department of the Treasury has warned that the government could default on its debt obligations beginning August 2 if it does not obtain authority to take on more debt above the current borrowing limit. The Senate did vote Friday to table a House-passed "Cut, Cap, Balance" bill. The bill, which President Obama opposes, would require actual spending cuts in the Fiscal 2012 federal budget, implement a statutory spending cap, and advance a Balanced Budget Amendment to the U.S. Constitution.

The WTI bottomed out at $98.43 during Friday's session while Brent futures fluctuated from $117.59 to $118.78.

The eastern half of the U.S. has been under a so-called heat dome of sizzling temperatures for much of the past week, stoking demand for gas-fired electricity to power air conditioners and fans. The dome is expected to "deflate" somewhat this weekend, and the relatively mild forecast help natural gas futures remain largely unchanged Friday. Natural gas for August delivery gained 0.4 cent to end the day at $4.40 per thousand cubic feet Friday.

Also keeping gas futures in check was a U.S. Energy Information Administration report Thursday showing that working natural gas in storage rose to 2.67 trillion cubic feet as of July 15. The latest figures represents a 60-Bcf net build from the previous week, which fell within analysts' expectations. A Platts survey of analysts had projected a build for the period ranging from 58 to 62 Bcf.

Front-month natural gas traded within a range from $4.37 to $4.47 Friday.

Gasoline for August delivery gained three cents to settle at $3.13 a gallon. The futures price fluctuated from $3.10 to $3.14.

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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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Commodity Corner: Oil Settles Higher on Bullish Stocks Data

- Commodity Corner: Oil Settles Higher on Bullish Stocks Data

Wednesday, July 20, 2011
Rigzone Staff
by Matthew V. Veazey

The price of light sweet crude oil gained 64 cents Wednesday to settle at $98.14 a barrel on news of a larger-than-expected drop in U.S. oil stocks. The Brent benchmark gained $1.09 to end the day at $118.15 a barrel.

The U.S. Energy Information Administration reported Wednesday that the country's commercial crude oil inventories fell nearly 1.1 percent last week to 351.7 million barrels. The 3.8 million-barrel draw was well above analysts' expectations. For instance, a Platts survey of analysts projected a draw of only 1.3 million barrels.

WTI futures fluctuated from $96.80 to $99.02 during Wednesday's session. The Brent contract peaked at $118.56 and bottomed out at $117.06.

Americans from the Upper Midwest to the South to the East Coast are seeking air-conditioned relief from high heat and humidity. Triple-digit heat indices are common throughout the eastern half of the country, and such conditions are expected to continue into next week. In spite of the sweltering heat, natural gas futures edged downward Wednesday to $4.50 per thousand cubic feet.

Front-month natural gas traded within a range from $4.43 to $4.60.

Gasoline futures ended the day higher at $3.15 a gallon—the intraday high. The intraday low for gasoline was $3.10.

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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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Commodity Corner: Oil Down on Bernanke Comments

- Commodity Corner: Oil Down on Bernanke Comments

Thursday, July 14, 2011
Rigzone Staff
by Saaniya Bangee

Oil futures plummeted Thursday after Federal Reserve Chairman Ben Bernanke stifled expectations of the Federal Reserve providing additional monetary aid. During the Fed's semiannual policy report, Bernanke explained that as of now, the central bank would not be releasing further funds.

The news sent the dollar soaring. A stronger greenback pressures oil prices making the dollar-denominated commodities more expensive for foreign buyers.

Easing the drop in prices, the U.S. Labor Department reported that the number of claims for unemployment benefits decreased by 22,000—the lowest in three months. In spite the decrease, application levels remain above 400,000, representing a weak job market.

In early trading, crude futures rose as high as $98.88 a barrel, before settling at $95.69 on the New York Mercantile Exchange (NYMEX).

Front-month Brent ended the August contract at $118.32 a barrel on the ICE Futures exchange. The intraday range for Brent crude was $117.73 to $119.40 a barrel.

Meanwhile, natural gas for August delivery lost 2.9 cents to end Thursday's session at $4.36 per thousand cubic feet. According to the U.S. Energy Information Administration, natural gas inventory grew by 84 billion cubic feet. Prices peaked at $4.41 and bottomed out at $4.25 Thursday.

Reformulated August gasoline blendstock also traded lower, settling at $3.12 a gallon. Gasoline futures traded between $3.094 and $3.159 Thursday.

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Commodity Corner: Oil Gets Boost from EIA, Bernanke

- Commodity Corner: Oil Gets Boost from EIA, Bernanke

Wednesday, July 13, 2011
Rigzone Staff
y Matthew V. Veazey

Oil futures received a boost Wednesday from the latest inventory data from the U.S. Energy Information Administration as well as testimony by Federal Reserve Chairman Ben Bernanke. The WTI benchmark on the New York Mercantile Exchange gained 62 cents to settle at $98.05 a barrel. Brent futures, meanwhile, rose $1.03 to end the day at $118.78 a barrel.

The EIA reported that U.S. commercial crude oil inventories declined sharply last week. According to the agency, oil stocks fell by 0.9 percent to 355.5 million barrels. The 3.1 million barrel week-on-week decline exceeded analysts' expectations. A panel of analysts surveyed by Platts, for instance, predicted a relatively modest 2.1 million-barrel draw.

Testifying before a U.S. House panel Wednesday, Bernanke hinted that the central bank may initiate a third attempt to stimulate the economy by printing more money to buy Treasury bonds. This "quantitative easing" monetary policy approach is designed to improve liquidity in the economy by enticing banks to make more loans to businesses and consumers. A third round of quantitative easing, or "QE3," would be bullish for oil because the Fed would weaken the value of the U.S. dollar by making money more widely available to banks. For investors holding currencies other than the greenback, dollar-denominated crude oil would become a better value.

The WTI peaked at $99.21 and bottomed out at $96.53 while Brent futures fluctuated from $117.01 to $119.50.

Front-month natural gas gained seven cents to settle at $4.40 per thousand cubic feet. Sizzling temperatures extending from the Midwest to the East Coast, with more to come beginning this weekend after a brief respite, have boosted cooling demand.

The intraday range for natural gas during midweek trading was $4.31 to $4.42.

Gasoline futures rose by a nickel to end the day at $3.15 a gallon. The commodity traded within a range from $3.08 to $3.175.

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Commodity Corner: WTI, Brent Settle Lower

- Commodity Corner: WTI, Brent Settle Lower

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

Oil futures ended the first day of the week lower as the U.S. Dollar gained strength against other major currencies. A stronger greenback makes oil a less attractive buy for investors holding other currencies.

The price of light sweet crude oil on the New York Mercantile Exchange settled at $95.15 a barrel, marking a $1.15 slide from the previous trading day. The Brent futures price lost $1.09 to end the day at $117.24 a barrel. The Dollar Index, which gauges the price of the greenback against other major currencies, increased 1.1 percent Monday.

Speculation that debt woes in Europe will escalate provided support for the dollar Monday as the focus shifts to Italy, where some believe that a crisis akin to what Greece recently experienced could erupt. Italian government bond yields rose late last week, signaling reduced confidence in Italy's ability to avert default. The WTI futures price peaked at $96.75 and bottomed out at $94.14 Monday while the intraday range for Brent fluctuated from $115.27 to $118.29.

Buoyed by predictions of warmer-than-normal temperatures throughout the Midwest and East Coast during the next two weeks, natural gas futures gained 8.5 cents Monday. The August contract price settled at $4.29 per thousand cubic feet after trading within a range from $4.18 to $4.34.

Gasoline for August delivery lost two cents to end the day at $3.07 per gallon. It fluctuated from $3.03 to $3.10.

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Commodity Corner: WTI Loses 2.5% on Jobs Data

- Commodity Corner: WTI Loses 2.5% on Jobs Data

Friday, July 08, 2011
Rigzone Staff
by Matthew V. Veazey

Following the release of anemic U.S. employment growth figures Friday, the price of light sweet crude oil on the New York Mercantile Exchange fell 2.5 percent to end the day at $96.20 a barrel.

The U.S. Department of Labor reported a slight increase in non-farm payrolls for June: a net gain of only 18,000 non-farm payrolls. The figure is based on the addition of 57,000 private-sector jobs offset by a 39,000-job reduction by local, state, and federal governments during the period.

The net gain for June was far lower than what economists had expected. For instance, Bloomberg reported that its survey of economists anticipated 105,000 additional jobs under the most bearish scenario. Dampening the outlook for crude oil demand further, the Labor Department also reported that the national unemployment rate for June rose to 9.2 percent—a 0.1 percentage point increase from the previous month.

The WTI traded within a range from $95.60 to $99.18 Friday. The Brent futures contract on the IntercontinentalExchange lost 26 cents to settle at $118.33. The Brent price fluctuated from $117.18 to $119.79.

Natural gas futures ended the day higher, settling at $4.205 per thousand cubic feet. The 6.5-cent increase in the August contract price stems from weather forecast models anticipating above-normal temperatures from the Southwest to the Northeast well into next week.

Front-month natural gas peaked at $4.21 and bottomed out at $4.12.

Gasoline for August delivery settled at $3.09 a gallon. The contract price fluctuated from $3.07 to $3.13.

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Commodity Corner: Oil Rises on Economic Data

- Commodity Corner: Oil Rises on Economic Data

Thursday, July 07, 2011
Rigzone Staff
by Saaniya Bangee

Propelled by forecasts that better days—and improved petroleum demand—are ahead for the global economy during the second half of this year, oil prices ended the day higher Thursday.

The front-month WTI contract price rose 2.09 percent Thursday, settling at $98.67 a barrel. Positive employment news contributed to the increase. According to the U.S. Labor Department, claims for unemployment benefits fell by 14,000—the lowest level in seven weeks. Meanwhile, payroll processor ADP said private-sector employment grew by 157,000 jobs last month. This is more than double of what economic experts had anticipated.

In addition, top U.S. retailers reported better-than-average sales for the month of June.

Light, sweet crude oil futures traded between $96.99 and $99.42—the highest intraday since June 15.

Its European counterpart gained nearly 5 dollars, settling at $118.59 per barrel on the ICE futures exchange. Brent prices fluctuated between $114.20 and $118.68 Thursday.

Natural gas for August delivery fell 8.8 cents Thursday on EIA reports. The U.S. Energy Information Agency reported a 634,000 barrel-decline in gasoline stocks, while distillate stocks fell by 191,000 barrels. Prices for natural gas peaked at $4.25 and bottomed out at $4.11, before settling at $4.138 per thousand cubic feet.

Gasoline futures added 9.23 cents a gallon, ending the trading session at $3.09 a gallon.

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Commodity Corner: Crude Up on Demand Promise

- Commodity Corner: Crude Up on Demand Promise

Tuesday, July 05, 2011
Rigzone Staff
by Saaniya Bangee

Oil futures soared more than 2 percent Tuesday on demand expectations. Light, sweet crude settled up $1.95 at $96.89 a barrel on the New York Mercantile Exchange (NYMEX). Prices for crude oil peaked at $97.48 a barrel.

Barclays Capital raised its 2012 forecasts for Nymex and Brent crude. It forecasts 2012 Nymex crude at $110 a barrel and Brent crude at $115. Barclays claims China, India, Saudi Arabia and Brazil will be the main sources of demand growth in 2012.

Meanwhile, Saudi Arabia's move to reduce the price of August Arab Light oil for its Asian buyers also pressured oil prices Tuesday.

The U.S. Commerce Department reported a 0.8 percent increase in factory orders. According to reports, U.S. businesses ordered more airplanes, automobiles and oil-drilling equipment for the month of May.

Brent crude for August also traded up Tuesday, settling at $113.61 a barrel. The intraday range for Brent crude was $111.23 to $114.34 a barrel.

Front-month natural gas gained nearly 4 cents, ending the trading sessions at $4.36 per thousand cubic feet. Futures rose on warmer weather forecasts. Higher temperatures increase the usage of air conditioning, which in turn increases the demand for natural gas. Natural gas traded between $4.25 and $4.41 Tuesday.

After fluctuating between $2.945 and $3.02, gas prices for the August contract settled at $2.98 per gallon.

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Commodity Corner: Crude Up on Bernanke Comments

Commodity Corner: Crude Up on Bernanke Comments

Wednesday, April 27, 2011
Rigzone Staff
by Saaniya Bangee

Crude oil climbed higher Wednesday after the U.S. Federal Reserve indicated there would be no change in its monetary policy.

Light, sweet crude settled at $112.76 a barrel, up 55 cents. After a two-day meeting, Federal Reserve chairman Ben Bernanke said Wednesday that the spike in inflation will be temporary, due to higher oil and gas prices, and that the economy will continue to recover at a moderate pace.

The Fed also said it will keep interest rates near zero. Lower interest rates have helped keep the dollar weak contributing to higher oil prices. Oil, which is priced in dollars, is more attractive to foreign buyers when the dollar is weak.

Crude futures for June delivery fluctuated between $110.71 and $113.40 Wednesday.

Meanwhile, crude futures were also pressured by strong gasoline prices. Front-month gasoline gained 6.22 cents, settling at $3.419 a gallon. Gasoline futures traded between $3.35 and $3.44 a gallon on Wednesday. RBOB gasoline futures ended the day's trading session at their highest in 33 months. The Energy Information Administration (EIA) reported that gasoline stockpiles fell last week for the 10th week in a row, the lowest level since Sept. 2009.

After trading between $4.37 and $4.43, May natural gas lost a penny to settle at $4.377 a gallon Wednesday.