WTI Futures Gain; End Week Down 3.6%
NYMEX-traded crude oil futures rose Friday, but fell nearly 4% for the week, as traders focused on risks tied to the weekend’s referendum in Crimea, which could threaten crude supplies from Russia, as well as energy demand in the region. The market also weighed a monthly International Energy Agency (IEA) report showing an unexpected climb in Iraqi oil output, the highest level since 1979. West Texas Intermediate (WTI) for April delivery climbed 69¢, or 0.7%, to settle at US$98.89 per barrel (/bbl). Tracking the most-active contracts, prices saw a loss of about 3.6% for the week, with much of the decline attributed to concerns over the prospects for energy demand following data showing a slowdown in China’s economy. In European trading, Brent North Sea crude rebounded from a one-month low as the IEA increased its forecast for 2014 global oil consumption by 95,000 barrels per day and as tensions grew in Ukraine. On the last session as the front-month contract, April Brent expired up $1.18, or 1.1%, to close at $108.57/bbl. The more actively traded May contract finished $1.29 higher at $108.21/bbl. The North Sea benchmark closed down 0.4% last week. Brent’s premium over WTI widened to $9.68, up from $9.19 in the previous session.

Natural Gas Ends at Seven-Week Low
U.S. natural gas futures rebounded almost 1% Friday but closed the week at a nearly seven-week low amid the approaching spring season, signaling warmer temperatures long-term and expectations of reduced demand for the heating fuel. Weather outlooks sources predict cool temperatures in the U.S. in the near-term six to 15 day forecast, though milder by comparison to winter storms experienced to date. NYMEX-traded natural gas for April delivery registered a session low of $4.341 per million British thermal unit (/mmBtu) before rebounding to close up 4.2¢ at US$4.425/mmBtu; however natural gas futures saw a net loss of 19.4¢, or 4.17% for the week stemming from significant, though expected, record storage withdrawal. In the week ending March 7, 195 billion cubic feet or natural was pulled from storage, the highest ever for the month. According to the U.S. Energy Information Administration, only 1.001 trillion cubic feet (Tcf) of gas remains in storage following a 2.833 Tcf withdrawal over the course of the heating season beginning in November.