Category:

Natural Gas Futures Slip as Warmer Weather Appears in Forecast

Natural gas futures edged down Monday as above-normal temperatures began appearing in extended weather forecasts, rolling back expectations of demand for gas-fired heating demand as winter weather fades. Natural gas for the front-month April contract fell 3.6 cents, or 1.3%, to $2.698 a million British thermal units on the New York Mercantile Exchange. The session opened in the red and turned briefly positive midmorning but sold off through the rest of the day. After a frigid January and February, a growing number of forecasters are calling for a warming for much of the U.S. in mid-March. Energy data firm Genscape Inc. on Monday called for a "huge" turnaround by mid-March and warmer-than-normal temperatures in the Northeast. "Domestic forecasts are calling for warm temperatures across the eastern seaboard during mid-March, effectively heralding the end of winter," research firm Gelber & Associates said in a note. If the forecasts prove accurate, […]

Posted On : Published By : Tom Whipple
Category:

It’s no JK: Oil spread blow-out portends new price slump

NEW YORK (Reuters) – Another sharp dive in oil prices may be nearer than you think, according to traders who see the market flashing warning signs that vital Oklahoma storage tanks will fill up even sooner than expected. While benchmark U.S. crude oil futures still appear to be holding firm after trading at around $50 a barrel for the past month or so, the spread between first- and second-month oil futures collapsed last week, with prompt prices diving by more than $1 to their deepest discount in four years. Shorthanded as "JK" in market jargon, U.S. West Texas Intermediate for April delivery (known as "J") were $2.38 a barrel cheaper than those for May ("K") on Friday, a gap that likely signals the early onset of another milestone in the great oil supply glut, running out of space in Cushing, Oklahoma, delivery point for the New York Mercantile Exchange […]

Posted On : Published By : Tom Whipple
Category:

L-Shaped Oil Recovery Flattens V-Shaped Market Optimists

An employee works at the base of drill pipes on an oil drilling derrick in the Salym Petroleum Development oil fields near the Bazhenov shale formation in Salym, Russia. Some producers are still counting on oil rebounding above $60 by the end of the year, and then to continue rising. Photographer: Andrey Rudakov/Bloomberg (Bloomberg) — Get ready for an L-shaped oil recovery. A growing consensus is emerging from the likes of BP Plc, the International Energy Agency, shale wildcatters and even the Saudis that a near-term recovery to $100-a-barrel crude isn’t in the cards. Instead, expect a range of $50 to $60 for at least the next few years. When oil prices plunged sharply in 2008, they rebounded almost as quickly. Several months ago, industry and government touted the same U or V-shaped recovery this time out. On closer examination, a new factor in the marketplace — shale oil […]

Posted On : Published By : Tom Whipple
Category:

Could Oil Prices Plummet A Second Time?

Are oil prices heading for a double dip? The surge in shale production has produced a temporary glut in supplies causing oil prices to experience a massive bust. After tanking to a low of $44 per barrel in January, falling rig counts and enormous reductions in exploration budgets have fueled speculation that the market will correct sometime later this year. However, there is a possibility that the recent rise to $51 for WTI and $60 for Brent may only be temporary. In fact, several trends are conspiring to force prices down for a second time. Drillers are consciously deciding to delay the completion of their wells, holding off in hopes that oil prices will rebound, according to E&E’s EnergyWire. The decision to put well completions on hold could provide a critical boost to the ultimate profitability of many projects. Higher oil prices in the months ahead will provide companies […]

Posted On : Published By : Tom Whipple
Category:

Glencore Paints Weak Outlook for Global Commodity Prices in 2015

(Bloomberg) — Glencore, the world’s largest publicly traded commodities house, painted a weak outlook for raw materials prices this year, saying supply of iron ore, oil and food commodities is likely to run above demand. Chief Executive Officer Ivan Glasenberg said global economic growth — traditionally the main driver of commodities consumption — remains lackluster. “The gradual process of normalization following the financial crisis has continued, but at a slower pace than many expected,” Glasenberg said in an earnings statement on Tuesday. “Some of the most important legacies of the crisis continue to drag on, including those relating to Europe.” The views of Glencore are closely watched in the commodities market as the company operates one of the largest trading operations in the world, spanning raw materials from copper to soybeans, oil and sugar. The Baar, Switzerland-based company was particularly bearish about iron ore, saying the market for the […]

Posted On : Published By : Tom Whipple
Category:

Exports, revenues increase in February

Iraqi workers tend to the Tuba oil field in Basra on Feb. 19, 2015. (ESSAM AL-SUDANI/Reuters) Iraq’s oil exports increased in February, despite poor weather in the south, giving the country a needed boost in revenues.Oil exports from southern Iraq actually slipped compared to January, according to Oil Ministry data, but that decrease was offset by higher sales through the Turkish port of Ceyhan, of oil exported in collaboration with the autonomous Kurdistan Regional Government (KRG).A turnaround in oil prices also helped relieve some pressure on Iraq’s budget.Iraqi crude of …

Posted On : Published By : Tom Whipple
Category:

Iraq Begins Offensive to Recapture Tikrit From ISIS

BAGHDAD — The Iraqi military, alongside thousands of Shiite militia fighters, began a large-scale offensive on Monday to retake the city of Tikrit from the Islamic State, a battle that could either become a pivotal fight in the campaign to reclaim north and west Iraq or deepen the country’s bloody sectarian divide. Iraqi state television announced the beginning of the offensive Monday morning, a day after Prime Minister Haider al-Abadi visited the forces massed on Tikrit’s outskirts and delivered a speech in which he said “zero hour” for the liberation of Tikrit was at hand. While visiting Samarra, a town near Tikrit, on Sunday, Mr. Abadi promised amnesty to local residents who had been forced to join the Islamic State. But he said it was the last chance for them to lay down their arms and assist the security forces in pushing out the militants. It is not the […]

Posted On : Published By : Tom Whipple
Category:

U.S. Steers Clear of Tikrit, Cites Iran Role in Support of Iraqis

ENLARGE Iraqi forces and allied militias take position in the northern part of Diyala province as they take part in an assault to retake the city of Tikrit from Islamic State jihadists Monday. Photo: Agence France-Presse/Getty Images WASHINGTON—Iraq’s latest push to retake the Sunni city of Tikrit from Islamic State extremists has thrown a new spotlight on the role being assumed by Iran in assisting Baghdad in its fight to regain control of the country. U.S. officials said Iran is supporting the offensive to retake Tikrit , supplying artillery, rocket fire and aerial drones. Islamic Revolutionary Guard Corps, or IRGC, fighters were on the ground with Iraqi units, mostly operating artillery and rocket batteries, according to a U.S. military official. At the Pentagon on Monday, Col. Steve Warren, a Defense Department spokesman, said the U.S. wasn’t providing assistance in the fight to retake Tikrit. The U.S. hasn’t conducted airstrikes […]

Posted On : Published By : Tom Whipple
Category:

Turkey eyes oil in northern Iraq

Sign up for our daily Energy Newsletter Turkish government says it has deals in hand to conduct oil exploration in the Kurdish north of Iraq. Photo courtesy by: Gulf Keystone Petroleum. ANKARA, Turkey, March 2 (UPI) — Agreements with Iraqi administrations open the door for Turkish oil exploration in the Kurdish north, the Turkish energy minister said Monday. "We have agreements with Baghdad and [the government in] northern Iraq," Turkish energy minister Taner Yildiz said. "In the frame of these agreements, we will explore for oil there." The minister offered no estimate of the reserve potential in targeted fields in the Kurdish north of Iraq, nor did he outline which companies would carry out the work. Though suspended in response to payment rows with the Kurdistan Regional Government, British energy company Gulf Keystone Petroleum has shipped tens of thousands of barrels of oil across the border to Turkey. Yildiz […]

Posted On : Published By : Tom Whipple
Category:

U.N. meets rivals in oil-rich Libya

Sign up for our daily Energy Newsletter German energy company Wintershall said it’s using Libyan staff to get operations going again at oil fields. Photo courtesy: Wintershall TRIPOLI, Libya, March 2 (UPI) — Though some oil operations in the country have resumed, the U.N. Support Mission in Libya said it was calling for a peaceful solution to divisive crises. Disputes between rival Libya governments, coupled with increased violence attributed to Islamic State militants, have spilled over into the oil sector. British energy company BP said in a much-watched annual report published last month that long-term production issues may result from the lingering violence. The U.N. Support Mission in Libya said it met with rival leaders to discuss ways to advance political dialogue and cease-fire proposals . "The participants agreed on the principle of a ceasefire and underlined the need to end the bloodshed in Libya and engage in dialogue," […]

Posted On : Published By : Tom Whipple