The Oil and Gas Markets

[Michael H. Standart]

From The Hellenic Shipping News:

US to curb excessive speculation

quote:

In a big win for the US futures industry, new Senate legislation unveiled yesterday would not impose higher margins on oil traders but would still aim to rein in excessive speculation in energy markets. Futures markets participants had feared that earlier legislation introduced by Sen. Byron Dorgan to boost significantly the amount of money, or margin, that speculators would have to put up to trade oil futures would make it into a anti-speculation bill from Senate Democratic leaders.

More at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13151&Itemid=79

Comment: The way things are going these days, this particular subject is going to be one of very profound interest, hence the new thread to track the news and discuss what's going on. This newsbit just kicks it off.

This whole piece of legislation looks to me like the mice voting to bell the cat. Congress may be able to put the brakes on what happens in New York, but speculators in London, Hong Kong, and Tokyo are hardly bound by U.S. law.

As of the time I post this, oil is trading at the following rates:

Crude: $130.04

Brent Light Sweet Crude: $132.27

 

[Michael H. Standart]

From The Hellenic Shipping News:

LNG Spot Trading to Capture 20% of Market by 2012, Poten Says

quote:

Short-term or spot trading in liquefied natural gas will expand to account for 20 percent of the market by 2012, driven by scarcity, price fluctuations and unexpected changes in demand, consultants Poten & Partners said.

More at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13192&Itemid=79

 

[Michael H. Standart]

From The Hellenic Shipping News:

Oil May Fall on U.S. Supply Increase, Demand Drop, Survey Shows

quote:

Crude oil may fall next week as U.S. supplies increase and slowing economic growth curbs fuel use in the world's biggest energy-consuming country. Ten of 22 analysts surveyed by Bloomberg News, or 45 percent, said prices will fall through July 25.

More at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13251&Itemid=31

Also:

Reduction in US-Iran tensions checks crude's rally
Story at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13242&Itemid=79

And:

U.K. Gas Prices Will Follow Oil Higher, Eclipse Says
Story at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13239&Itemid=79

 

[Grant Carman]

Michael

I was in the UK for the month of May, and rented the smallest car I could. It was diesel, and the price per litre averaged about 1.30. That's 1 POUND 30 per litre, or roughly 2.60 CDN per litre. That's double what we pay here. I don't know how people do it there.
But one thing we noticed, is the decided lack of large cars on the road, so I guess they're ahead of us.

 

[Michael H. Standart]

>>But one thing we noticed, is the decided lack of large cars on the road, so I guess they're ahead of us.<<

It's happening on this side of the Western Ocean as well. Even here in South Carolina where people just love their SUV's and pickup trucks, finding a small and economical set of wheels on the used car lot is becoming a lot more difficult while the BIG boys sit there with few takers.

Hell, I won a car in a drawing last year at work, and had a choice between a Chevy Silverado or a Malibu. Since I've been tracking and reporting the news for ET, I knew where the price of oil was going. Choosing the Malibu was a no-brainer!

 

[Michael H. Standart]

From The Hellenic Shipping News:

Faber Says Oil May Decline as Global Growth Weakens

quote:

Marc Faber, who told investors to bail out of U.S. stocks before 1987's so-called Black Monday crash, said oil prices may fall to $100 a barrel as demand slows in a global economy at the ``tail end'' of its expansion.

More at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13359&Itemid=79

Comment: I think this guy is dreaming but I'd love it if he was right.

Related story:

Lehman Lowers Crude Demand Growth Forecast by 47% on U.S. Slump
Story at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13353&Itemid=79

Oil Today:

Crude: $130.59

 

[Grant Carman]

Michael

I too have downsized. When we got back from the UK, one of the first things I did was trade my big assed SUV for a small Toyota Matrix. And of course, the trade in value of the SUV was a disaster. It's amazing. What used to last me 2.5 days in gas, now lasts me more than a week.

But I still miss the heated leather seats.

 

[Michael H. Standart]

>>And of course, the trade in value of the SUV was a disaster. It's amazing. <<

Doesn't come as much of a surprise to me. Oil prices are falling for the moment but I don't think that's going to last long. I think that ultimately, the markets are going to find some sort of balance and stay there, probably for quite awhile until the next panic attack sets in.

Prices as I post this:

Brent Light Sweet Crude: $128.40
Crude: $127.15

Prices subject to radical change without warning. For anybody interested, my source is the MYMEX page at http://www.nymex.com/index.aspx and it's always worth keeping an eye on.

 

[Michael H. Standart]

From The Hellenic Shipping News:

Global Oil Supply And Demand Are Finely Balanced

quote:

Some commentators have blamed the large price rise in the international price price of crude oil in recent months on Opec, or the oil companies, or geopolitical uncertainty, and more recently speculation has also been blamed when investors buy commodities like oil for a limited period to hedge against the weakening US dollar. "However the most likely explanation of the rapid rise in oil prices over the last two years is that because the global market is now so finely balanced between supply and demand, small changes in that balance can cause disproportionately large increases in prices" spokesman for the Sustainable Energy Forum, John Blakeley, said today.

A fine commentary the rest of which is at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13515&Itemid=79

Also:

Russia to raise oil export duty to record $495.9/ton from August
Brief story at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13493&Itemid=79

Closing prices:

Crude: $127.60

 

[Michael H. Standart]

From The Hellenic Shipping News:

GLOBAL MARKETS-Oil falls, supporting Asia stocks;dollar firm

quote:

Oil prices extended losses on Wednesday on fears of waning energy demand, buoying Asian stocks and weighing on bond markets as investors searched for higher returns. European stock markets latched on to the rally and opened more than 1 percent higher. The dollar held gains made the previous session after top U.S. officials, including Treasury Secretary Henry Paulson, gave it a verbal lift. Crude oil futures fell 0.5 percent to $127.75 a barrel after having closed on Tuesday at the lowest since June 5 on worries that record oil prices were stunting economic growth.

More at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13578&Itemid=79

Related content:

Demand for oil products hits two-year low in Korea
Story at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13576&Itemid=79

Asian Stocks Rise for a Third Day as Credit, Oil Concerns Ease
Story at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13574&Itemid=79

Price per barrel at time of posting:

Crude: $126.45

Brent Light Sweet Crude: $127.41

 

[Michael H. Standart]

From The Hellenic Shipping News:

Winners of oil prices aren't only international majors

quote:

The big winners of high oil prices are not the international oil companies being criticised by politicians for their enormous profits, but rather the oil services companies that the majors rely on for equipment and labour. Wood Mackenzie, the energy consultants, say that over the past three years, large oil service company revenues have on average tripled, with net margins rising even higher, outperforming the far better known majors, ranging from ExxonMobil to BP.

More at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13604&Itemid=79

Also:

Fuel price rise boosts Chinese demand
Story at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13613&Itemid=79

 

[Michael H. Standart]

From The Hellenic Shipping News:

RPT-GLOBAL MARKETS-Oil hits 7-week low, supports stock rally

quote:

Oil prices fell to a seven-week low below $125 a barrel on Thursday as U.S. energy demand was seen reaching a tipping point, sending investors into Asian stocks for the fourth consecutive day. A retreat in oil prices and signs of improved confidence in the U.S. financial sector also pushed the U.S. dollar to a one-month high against the yen. Adding to a sense of short-term relief, U.S. President George W. Bush dropped a threat to veto a housing bail-out bill that would extend a potential $25 billion lifeline to the embattled mortgage lenders Fannie Mae and Freddie Mac.

More at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13677&Itemid=79

Comment: It's amazing how economic factors which bear no recognizable relationship to oil have an impact on same. I doubt it'll last long but enjoy it while it does.

Oil prices at the time of this posting:

Crude:$124.19
Brent Light Sweet Crude:$125.15

 

[Michael H. Standart]

From The Hellenic Shipping News (These guys are really a goldmine for these stories):

Oil prices likely to increase despite OPEC's measures

quote:

Current fluctuations in crude prices are unprecedent since oil was discovered in the first half of the 19th Century. The first major hike from $2.5 to $11 was in the 1970s, but that seems insignificant compared to the current leaps that brought oil up to nearly $150 per barrel. Yesterday, oil prices went up and down by as much as $11 during the course of one trading session.

Full story at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13731&Itemid=79

Also:

Who will solve the oil puzzle?
Story at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13726&Itemid=79

And

LNG is the key to energy security
Story at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13717&Itemid=79

 

[Michael H. Standart]

From Rigzone:

Oil Prices Head Up Friday Morning

quote:

Crude oil prices rose modestly Friday to $126.26 a barrel at the New York Mercantile Exchange, following a recent $20-per-barrel drop.

More at http://www.rigzone.com/news/article.asp?a_id=64691

 

[Michael H. Standart]

From The Hellenic Shipping News:

Oil May Fall on Growing Saudi Output, Fuel Supply, Survey Shows

quote:

Crude oil may fall next week as Saudi Arabia increases oil output to lower prices and U.S. fuel supplies climb as slowing economic growth curbs consumption. Thirteen of 28 analysts surveyed by Bloomberg News, or 46 percent, said prices will fall through August 1.

More at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13891&Itemid=31

Comment: Guess we'll see what really happens starting tomorrow morning.

Also:

Human element to put the brakes on LNG’s advance?

quote:

There has been a great deal of attention in the current financial climate about the ‘credit crunch’, which is impacting all industry sectors, including shipping. However, in the shipping industry, one of the prevailing concerns in recent years, and one that is likely to persist for the foreseeable future, is what one commentator recently dubbed the ‘crewing crunch’ says Curtis Davis Garrard LLP of London. The issue has arisen because of both the existing and anticipated significant shortfall in seafarers and qualified officers capable of fulfilling roles on vessels. Specialist industries, such as LNG, are expected to be hardest hit because of the additional skill levels required.

Full story at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13894&Itemid=31

 

[Michael H. Standart]

From The Hellenic Shipping News:

Oil prices turn higher in Asian trade

quote:

World oil prices turned higher in Asian trade on Monday, while the market remains faced with signs of slowing demand and rising supply, analysts said. New York's main contract, light sweet crude for September delivery, rose 45 cents to 123.71 dollars a barrel.

More at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13946&Itemid=79

Prices at time of posting, from NYMEX:

Crude: $123.88
Brent Light Sweet Crude: $124.56

 

[Michael H. Standart]

From The Hellenic Shipping News:

No let-up on rising crude oil demand

quote:

Despite crude oil prices staying firmly above $100, oil demand continues to rise, driven principally by steady growth east of Suez.

Story at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13972&Itemid=79

And

Series of Oil Developments Gets Go Ahead in Angola Block 31

quote:

Sonangol E.P., has authorised BP and its co-venturers to develop a series of deepwater oil discoveries in offshore Angola's Block 31. The Block 31 developments programme is based on a standardised development concept, which is intended to reduce cycle time, optimize capital and maximise operating efficiency through standardised design, fabrication and commissioning.

More at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13969&Itemid=79

And finally;

CNPC eyes Chesapeake shale gas stakes

quote:

China National Petroleum Corp (CNPC), China's top state oil firm, is thinking of bidding for minority stakes in shale gas assets of Chesapeake Energy Corp, according media report.

More at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=13970&Itemid=79

 

[Michael H. Standart]

From The Charlotte Observer:

Oil falls nearly $4 on demand worries, dollar gain

quote:

NEW YORK --Oil prices tumbled more than $3 a barrel Tuesday, falling to their lowest level in seven weeks as the perception that record prices are curtailing the world's thirst for energy sparked another dramatic sell-off.

More at http://www.charlotte.com/463/story/733182.html

Prices at time of posting:

Crude: $121.81
Brent Light Sweet Crude: $122.68

Comment: Prices had initially surged because of the attacks on the Nigerian oil lines but other factors brought it back down. It's an extremely volitile market out there.

 

[Michael H. Standart]

From The Hellenic Shipping News:

New ExxonMobil Project Commercializes Natural Gas Liquids in Nigeria

quote:

Industry-Leading Project is Fifth Major Startup of 2008. Exxon Mobil Corporation announced that its affiliate has commenced operations of a $1.3 billion project in Nigeria to produce and sell natural gas liquids, providing a new source of energy and economic benefits while reducing environmental impacts. Operated by Mobil Producing Nigeria Unlimited, an ExxonMobil affiliate, the East Area Natural Gas Liquids II project involves the recovery of 275 million barrels of natural gas liquids from associated gas produced in East Area reservoirs from Blocks OML 67, 68 and 70.

More at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=14099&Itemid=31

Also:

Russia boosts gas supplies to Armenia 3% to 1.1 bln cu m in 1H08
Story at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=14095&Itemid=79

And:

OPEC expects Indonesia to remain as membership
Story at http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=14087&Itemid=79

Closing price for crude: $122.06

 

[Michael H. Standart]

From The Fresno Bee:

Stocks surge higher, led by financial sector

quote:

NEW YORK (AP) Wall Street soared for the second straight day Wednesday, rallying in the last hour of trading after a rebound in financial stocks and optimism about private sector jobs.

Investors brushed off a sharp jump in oil prices. The Dow Jones industrials rose more than 180 points, bringing its two-day gain to more than 450.

More at http://dwb.fresnobee.com/24hour/business/story/3930792p-13678435c.html

Crude close: $126.77