Oil Edges Higher on Geopolitical Concerns
NYMEX-traded crude oil prices climbed on Friday—scoring a weekly advance of more than 2%—but as March winds down, U.S. crude futures were set for a monthly loss. The weekly advance came amid global supply concerns arising from Ukraine-Russia tensions and ongoing Libyan protests. Other factors contributing to the gains have been a continued drop in crude inventories at the key Cushing, Okla. delivery hub and upbeat U.S. economic data. West Texas Intermediate (WTI) for May delivery tacked on 39 cents to settle at $101.67 per barrel (/bbl). In European trading, Brent North Sea crude rose for a fourth straight session—notching its first weekly gain since February—on promising U.S. economic data and concerns that possible Western sanctions on Russia’s energy sector could disrupt global supplies. The United States and NATO on Friday voiced alarm over what they said were thousands of Russian troops massed near its western border with Ukraine. Russian President Vladimir Putin has reserved the right to send troops into Ukraine, home to a large population of Russian-speakers in the east. Prompt-month May Brent ended up 24 cents at $108.07/bbl on IntercontinentalExchange. The spread between Brent and WTI narrowed to $6.40/bbl, from $6.55/bbl in the previous session.
Natural Gas Futures Score 4% Weekly Gain
U.S. benchmark natural gas futures closed lower on Friday, but posted a 4% gain on the week—the first weekly increase in three. On its first day as spot month, NYMEX-traded natural gas for May delivery slipped 5.3 cents to settle at $4.485 per million British thermal units (/MMBtu). Forecasts for mild weather and weaker heating demand dashed a rally early in the session that pushed the new front-month contract to within 2 cents of the April contract’s expiration. The April contract rose 4% on Thursday. Despite Friday’s decline, the front-month is up 4% for the week and 6% on the year. Investors remain concerned about gas inventories, which remain at the lowest level in 11 years. In its latest report released March 28, the U.S. Energy Information Administration said utilities pulled 57 billion cubic feet (Bcf) of gas from storage in the week ended March 21. That was below the 90-Bcf draw last year but well above the five-year average draw of 7 Bcf, data showed. Utilities have now withdrawn a record 2.938 trillion cubic feet of gas from storage since the start of the heating season in November, leaving just 896 Bcf—the lowest since 2003.
Recommended Reading
Sunoco’s $7B Acquisition of NuStar Evades Further FTC Scrutiny
2024-04-09 - The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for Sunoco’s pending acquisition of NuStar Energy has expired, bringing the deal one step closer to completion.
From Restructuring to Reinvention, Weatherford Upbeat on Upcycle
2024-02-11 - Weatherford CEO Girish Saligram charts course for growth as the company looks to enter the third year of what appears to be a long upcycle.
NOV's AI, Edge Offerings Find Traction—Despite Crowded Field
2024-02-02 - NOV’s CEO Clay Williams is bullish on the company’s digital future, highlighting value-driven adoption of tech by customers.
Green Swan Seeks US Financing for Global Decarbonization Projects
2024-02-21 - Green Swan, an investment platform seeking to provide capital to countries signed on to the Paris Agreement, is courting U.S. investors to fund decarbonization projects in countries including Iran and Venezuela, its executives told Hart Energy.
Shell’s CEO Sawan Says Confidence in US LNG is Slipping
2024-02-05 - Issues related to Venture Global LNG’s contract commitments and U.S. President Joe Biden’s recent decision to pause approvals of new U.S. liquefaction plants have raised questions about the reliability of the American LNG sector, according to Shell CEO Wael Sawan.