Oil Futures Hold Steady Below $60 a Barrel ($59.57/bbl)

Associated Press ^ | November 2, 2005 | Christopher Torchia

[RWR8189]

SINGAPORE (AP) -- Crude oil prices held steady just below US$60 a barrel on Wednesday after predictions of warmer weather in the United States sparked a big drop two days earlier. Market experts said prospects for rising demand could keep prices at current levels.

Light, sweet crude for December delivery gained 5 cent to US$59.90 a barrel in electronic trading on the New York Mercantile Exchange. On Tuesday, the contract rose 9 cents to settle at $59.85 a barrel on the New York Mercantile Exchange, where a day earlier they had fallen nearly US$1.50 to a level about 15 percent below the Aug. 30 intraday peak of US$70.85.

Heating oil gained slightly to US$1.8086 a gallon (3.8 liters) while gasoline also edged up to US$1.6070.

On London's ICE Futures exchange, formerly known as the International Petroleum Exchange, December Brent futures inched up 1 cents to US$58.38.

Some U.S. market experts said the weakness in demand didn't mean prices would fall further, noting robust economic growth and expected high demand in 2006.

The weather in the U.S. Northeast and Midwest is viewed as a gauge of demand for home-heating fuels such as natural gas and heating oil. If the weather is warmer than usual, that will ease pressure on producers in the Gulf of Mexico that are still recovering from hurricanes Katrina and Rita.

"The post-hurricane price effects really hit a nerve with consumers and it's affected market psychology as well," says Jim Burkhard at Cambridge Energy Research Associates. "But we're not likely to see the same degree of demand destruction in the next few months."

Analysts say oil demand that's been absent in recent weeks will return as refineries struck by the hurricanes recover, as increased fuel production could limit unwelcome price leaps and encourage consumption.

Still, recovery efforts have been slow. The U.S. Minerals Management Service said Tuesday that 67 percent of daily oil production and 53 percent of natural gas production in the Gulf of Mexico remained off-line, slightly lower than Monday. Oil prices are still about 20 percent higher than a year ago.

With oil prices surging, Saudi Arabia is poised to finish the year with a 54 percent increase in oil revenue and a budget surplus of US$55.5 billion (euro46.2 billion), a Riyadh bank reported.

It will be the second straight year that the kingdom enjoys record oil revenues. The high prices that produced this year's windfall were driven by hurricanes and the limited spare capacity among producers, the Samba Financial Group said in a report made available in Dubai.

In Washington, top executives of three major oil companies will be asked by senators next week why some of their industry's estimated US$96 billion (euro80 billion) in record profits this year shouldn't be used to help people having trouble paying their energy bills.

Lee Raymond, chairman of Exxon Mobil Corp., Jim Mulva, chief executive of ConocoPhillips, and John Hofmeister, president of the U.S. unit of Royal Dutch Shell PLC, will be among the industry executives to be questioned at a Senate hearing, according to congressional and industry officials.

[RWR8189]

Light, Sweet Crude Oil

11/2/2005 Session Contract Detail for Dec 5

	Last				59.57
	Open High				59.90
	Open Low				59.90
	High				60.05
	Low				59.52
	Settle				59.85
	Change				-.28
	Open Interest				236428
	Volume				0.00
	Last Updated				11/02/2005 05:34:54

Unleaded Gasoline

11/2/2005 Session Contract Detail for Dec 5

	Last				1.5955
	Open High				1.6035
	Open Low				1.6035
	High				1.6100
	Low				1.5950
	Settle				1.6036
	Change				-.0081
	Open Interest				61994
	Volume				0.00
	Last Updated				11/02/2005 05:30:38

Heating Oil

11/2/2005 Session Contract Detail for Dec 5

	Last				1.7969
	Open High				1.8075
	Open Low				1.8075
	High				1.8125
	Low				1.7965
	Settle				1.8050
	Change				-.0081
	Open Interest				61818
	Volume				0.00
	Last Updated				11/02/2005 05:36:09

Natural Gas

11/2/2005 Session Contract Detail for Dec 5

	Last				11.782
	Open High				11.870
	Open Low				11.870
	High				11.995
	Low				11.782
	Settle				11.860
	Change				-.078
	Open Interest				76169
	Volume				0.00
	Last Updated				11/02/2005 05:33:47

[ConsentofGoverned]

All Bush's fault.

[ardara]

Yesterday gasoline was $2.14 per gallon in Lancaster,Pa.

[Larry Lucido]

70 degrees forecast for the next two days here in Michigan.

[q_an_a]

this morning Natural gas is down to 10.70 for spot and NYC gate. I'll be happier when it is below 9.50

[crz]

Thank you RWR! Again you keep us all informed.

[topher]

Natural Gas prices are still way too high.

However, many parts of the US are having a very warm fall after a cold snap. I don't think that NYC or Philadelphia or Pittsburg have seen their first freeze, but I am not sure about Pittsburg (and it is late in Fall for there to be no frost on the pumpkin).

Refineries should be at 100% -- after repairs from the Hurricanes and fall maintenance -- but maybe maintenance on refineries are not over.

Higher prices will spur US production -- which is in a very sad state of affairs.

It would be nice for the enviro wackos to allow drilling so people do not freeze and go broke over higher fuel prices.

Natural Gas production may be months away from returning back to normal because of the extensive hurricane damage, but natural gas storage is continuing to build with the warm weather -- tomorrow should show that with EIA reports.

It will help the economy if Natural Gas can get down to $7 by March or April...

[bray]

Timmmber!! Once the last holder speculaters have to dump these prices are heading south of $50.

Pray for W and Our Troops

[Trust but Verify]

I'm in Wisconsin, same thing here. This fall has been spectacular, now can we just skip winter? BTW, we haven't turned our heat on yet. It has been a very comfortable 68 degrees in our house!

[Trust but Verify]

We are doing our part here in SE Wisconsin. We use NG only for heating, and we have yet to turn the furnace on. The weather has been very cooperative with the exception of a couple of chilly mornings.

[bmwcyle]

Sell, buy, build a shelter, run out of the city, oh its down, never mind.

[EQAndyBuzz]

$2.29 in Edison, NJ.

[SierraWasp]

This just in from BigCharts.MarketWatch.com:

11:39 Futures Movers: Oil reclaims $60 level as traders weigh supply data

[AFPhys]

My private polling (lol - but this is a serious post) indicates that many people are using far less oil and gas this year than they did last year. I predict that many investors and oil delivery services will be stunned when a month comes around and the inventory of heating oil goes through the roof.

[RWR8189]

Light, Sweet Crude Oil

11/2/2005 Session Contract Detail for Dec 5

	Last				59.05
	Open High				59.90
	Open Low				59.90
	High				60.40
	Low				58.95
	Settle				59.85
	Change				-.80
	Open Interest				231880
	Volume				6300
	Last Updated				11/02/2005 13:38:59

Unleaded Gasoline

11/2/2005 Session Contract Detail for Dec 5

	Last				1.5525
	Open High				1.6035
	Open Low				1.6035
	High				1.6220
	Low				1.5510
	Settle				1.6036
	Change				-.0511
	Open Interest				62529
	Volume				760
	Last Updated				11/02/2005 13:39:24

Heating Oil

11/2/2005 Session Contract Detail for Dec 5

	Last				1.7600
	Open High				1.8075
	Open Low				1.8075
	High				1.8180
	Low				1.7500
	Settle				1.8050
	Change				-.0450
	Open Interest				60130
	Volume				1247
	Last Updated				11/02/2005 13:40:54

Natural Gas

11/2/2005 Session Contract Detail for Dec 5

	Last				11.510
	Open High				11.870
	Open Low				11.870
	High				11.995
	Low				11.510
	Settle				11.860
	Change				-.350
	Open Interest				73439
	Volume				2842
	Last Updated				11/02/2005 13:41:55

 

 

[RightWhale]

Meanwhile, in Alaska, the Natural Gas Pipeline contract is under attack. There are many politicians who are coming out against the proposed contract, which is strange since some of the detractors are supposedly of the same party as Gov Murkowski. The contract is apparently not communist enough to please everybody, which is understandable in the case of Red Tony's appointees, but kind of mystifying for those Republicans now speaking out.

[uglybiker]

Wake me when it hits $20.

[Tolerance Sucks Rocks]

In Washington, top executives of three major oil companies will be asked by senators next week why some of their industry's estimated US$96 billion (euro80 billion) in record profits this year shouldn't be used to help people having trouble paying their energy bills.

If the Washington Area Fuel Fund comes a knockin', I'll be happy to donate. If the fat cats did donate some of their salaries to local fuel funds, that would be great. But does Congress REALLY NEED to go sniffing around for more egalitarianism???

Maybe THIS could occupy Congress's time for awhile:

[Tolerance Sucks Rocks]

It's like they DELIBERATELY want to sabotage our energy policy! All I can say is...

[RightWhale]

When the Dems do this, they are true to their essence, but the Republicans here seem strangely driven to self destruction. Couple elections ago they placed a roadside bomb and derailed their own Gov candidate, which is how Red Tony got in. The Rs are still at it. This place is banana republic in a lot of ways.