U.S. Crude Oil Rises More Than 2% as Francine Disrupts Production in Gulf of Mexico
U.S. crude oil jumped more than 2% to close above $68 per barrel on Thursday...
U.S. crude oil jumped more than 2% to close above $68 per barrel on Thursday after Hurricane Francine churned through the Gulf of Mexico, disrupting oil production before making landfall in Louisiana.
Oil futures rose more than 2% in the previous session as the storm threatened supplies. Francine has since been downgraded to a tropical depression.
West Texas Intermediate October: $68.97 per barrel, up $1.66, or 2.47%. Year to date, U.S. crude oil has fallen nearly 4%.
Brent November contract: $71.97 per barrel, up $1.36, or 1.93%. Year to date, the global benchmark has dropped around 6.6%.
RBOB Gasoline October contract: $1.927 per gallon, up about 1.57%. Year to date, gasoline has pulled back more than 8%.
Natural Gas October contract: $2.357 per thousand cubic feet, up 3.83%. Year to date, gas is down more than 6%.
The quick rebound on the storm came after prices closed at their lowest level since December 2021 on Tuesday. Giovanni Staunovo, an analyst with UBS, said the recent slump may be due to traders losing confidence in OPEC’s ability to maintain compliance with production cuts at lower price levels. UBS expects oil prices to continue to rise, at least in the short term.
Coterra Drops Last Marcellus Rig, May Halt Completions
Coterra Energy has recently...
Coterra Energy has recently released its last Marcellus Shale rig and may suspend well completions in the area. CEO Tom Jorden announced at a conference that the company currently has no active rigs in the Marcellus, with only one frac crew remaining. Once this crew finishes its work, Coterra may halt all completion activities in the region.
The company is shifting its capital towards more liquids-rich areas such as the Permian and Anadarko basins. This strategic move comes as low gas prices negatively impact exploration and production companies focused on natural gas. Coterra, formed from the merger of Cimarex Energy and Cabot Oil & Gas, is leveraging its diverse portfolio to adapt to market conditions.
Coterra's decision to potentially pause operations in the Marcellus is significant given the company's historical involvement in the play. Cabot Oil & Gas, now part of Coterra, was an early developer of the horizontal Marcellus play, following Range Resources, which is credited with discovering the play in 2007. As of the end of 2023, Coterra held approximately 186,000 net acres in the Marcellus dry gas window, primarily in Susquehanna County, Pennsylvania.
S&P 500 and Nasdaq score 4-day win streaks as U.S. stocks close higher
U.S. stocks ended near the session's highs on Thursday,...
U.S. stocks ended near the session's highs on Thursday, as inflation data helped cement expectations for the Federal Reserve to take a modest approach next week with its first interest-rate cut in four years.
The Dow Jones Industrial Average gained 235.06 points, or 0.6%, ending at 41,097.77. The session high was 41,107.35.
The S&P 500 climbed 41.63 points, or 0.8%, closing at 5,595.76.
The Nasdaq Composite advanced 174.15 points, or 1%, finishing at 17,569.68.
The S&P 500 and Nasdaq both sealed their fourth straight session of gains.
Despite an uptick in turbulence, recent gains for stocks left equities on the doorstep of record territory. According to Dow Jones Market Data, the Dow ended Thursday only 1.1% below its record close from late August, while the S&P 500 was 1.3% off its mid-July record finish. All three indexes also were on pace for the biggest weekly gains since the week ending August 16.
Industry Warns Ruling Could Disrupt GoM Oil, Gas Production
Energy trade associations are decrying a legal...
Energy trade associations are decrying a legal decision by a U.S. District Court judge they say could halt oil and gas operations in the Gulf of Mexico (GoM) before the end of the year.
A Maryland judge reversed a 2020 environmental decision that had served as the framework for oil and gas activities in the GoM, potentially suspending offshore operations indefinitely pending further regulatory review.
Federal Judge Deborah Boardman, an appointee of President Joe Biden, vacated a 2020 Gulf of Mexico Biological Opinion (BiOp) in an opinion filed on Aug. 19 in the U.S. District Court for the District of Maryland. Boardman’s decision cited violations of the Endangered Species Act and the Administrative Procedure Act due to failing to fully analyze the jeopardy of certain species’ populations and the impact of oil spills.
Hotter Temps Drive Japanese Demand for Spot LNG from US
Japan is seeking LNG, potentially from the...
Japan is seeking LNG, potentially from the U.S., to cover summer-related electricity demand that could extend into early October amid reduced gas import supply.Â
Above-average temperatures are forecast for most regions of Japan through at least the end of September, according to Rystad Energy’s Senior Analyst Masanori Odaka.Â
“Hotter temperatures and limited prompt supply have compelled Japanese importers to secure spot LNG for September delivery,” Odaka said Sept. 10 in a research report.Â
