Home Energy Oil Ends Lower as Sandy Fuels Output and Demand Woe

Oil Ends Lower as Sandy Fuels Output and Demand Woe

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Oil futures fell Monday to settle back below $86 a barrel and gasoline prices rose, with the market weighing the prospects for energy demand and production, as the East Coast braced for Hurricane Sandy.

Crude for December delivery lost 74 cents, or 0.9%, to settle at $85.54 a barrel. It was the lowest settlement for crude futures since July 10, according to FactSet data.

The New York trading floor was closed Monday as Hurricane Sandy approached the East Coast, but energy futures traded on the electronic platform and settled at their usual time Monday.

A spokesman for CME Group Inc.’s  New York Mercantile Exchange said he could not comment when asked if floor trading would open Tuesday, “except to say that we will continue to monitor the situation as well as continue our coordination with other exchanges.”

“The hurricane has implications on price of oil as it affects both supply and demand,” said Fawad Razaqzada, technical analyst at GFT Markets in London. The shutdown of some East Coast oil refineries “could potentially reduce the total U.S. output by around 7%,” he wrote in an email.

But for now, “supply concerns are more than offset by the ongoing demand worries, which is why [West Texas Intermediate crude] is again trading lower,” Razaqzada added. “Investors are concerned that the storm will dampen U.S. oil consumption due to reduced land and air transportation.”

Demand impact

Gasoline futures rallied Monday, with the November contract RBX2 +1.58%  climbing 6 cents, or 2.1%, to settle at $2.76 a gallon.

“This storm is certainly going to be one of the most significant [gasoline] ‘demand destroyers’ of the century,” said Tom Kloza, chief oil analyst at the Oil Price Information Service. It also has the possibility of “contributing some supply disruption.”

In its latest situation report, the U.S. Department of Energy’s Office of Electricity Delivery and Energy Reliability said that as of 8 a.m. Eastern, Phillips 66 reported that its 238,000 barrel-per-day refinery in Linden, N.J., was shut down. There are reduced refinery rates at Philadelphia Energy Solutions’ Philadelphia refinery and PBF Energy’s Delaware City refinery.

Kloza believes the storm will remove some 2 million to 5 million barrels of consumption from demand. “If refineries are restarted without incident and waterborne transport gets back to normal (by Friday or the weekend), I believe that today’s 5-10 cents a gallon increases will prove to be ‘one-off’ moves.”

November heating oil also rose nearly 2 cents, or 0.6%, to $3.12 a gallon.

The November contracts for gasoline and heating oil expire after the close on Wednesday.

“In the short term, the market will be focused on refinery shutdowns and the lack of imports, but what we may be talking about after the storm is the biggest

Energy Futures
WTI CRUDE OIL
Sym Last Close Change Open High Low Time (CST)
CLU22 SEP 22 88.19 88.19 0.08 | 9% 87.39 88.32 87.32 11:48pm
CLV22 OCT 22 87.75 87.75 0.06 | 7% 87.10 87.89 86.92 11:48pm
CLX22 NOV 22 87.37 87.37 0.07 | 8% 86.73 87.51 86.63 11:48pm
CLZ22 DEC 22 86.80 86.80 -0.04 | -5% 86.22 87.06 86.15 11:31pm
CLF23 JAN 23 86.36 86.36 0.06 | 7% 85.88 86.50 85.88 11:44pm
CLG23 FEB 23 85.65 85.65 -0.04 | -5% 85.23 85.68 85.23 9:45pm
CLH23 MAR 23 85.05 85.05 -0.03 | -4% 84.71 85.14 84.71 11:31pm
CLJ23 APR 23 84.64 84.64 0.14 | 17% 84.56 84.64 84.56 10:04pm
CLK23 MAY 23 83.92 83.92 1.07 | 129% 83.46 84.36 82.48 6:12pm
CLM23 JUN 23 83.46 83.46 0.09 | 11% 83.03 83.54 83.02 10:58pm
CLN23 JUL 23 82.85 82.85 0.99 | 121% 82.28 83.44 81.66 6:13pm
CLQ23 AUG 23 82.34 82.34 0.95 | 117% 81.80 82.76 81.26 6:13pm
CLU23 SEP 23 81.86 81.86 0.92 | 114% 80.81 82.51 80.81 6:12pm
CLV23 OCT 23 81.40 81.40 0.89 | 111% 80.75 81.76 80.50 6:13pm
CLX23 NOV 23 80.95 80.95 0.84 | 105% 80.30 81.31 80.20 6:12pm
CLZ23 DEC 23 80.44 80.44 -0.08 | -10% 80.14 80.60 80.01 11:18pm
CLF24 JAN 24 80.04 80.04 0.75 | 95% 80.04 80.38 80.04 6:13pm
CLG24 FEB 24 79.57 79.57 0.71 | 90% 79.57 79.83 79.57 6:12pm
CLH24 MAR 24 79.12 79.12 0.68 | 87% 79.12 79.81 78.39 6:14pm
CLJ24 APR 24 78.69 78.69 0.65 | 83% 78.69 78.99 78.69 6:12pm
CLK24 MAY 24 78.28 78.28 0.61 | 79% 78.28 78.58 78.28 6:14pm
CLM24 JUN 24 77.48 77.48 -0.41 | -53% 77.48 77.48 77.48 6:21pm
CLN24 JUL 24 77.47 77.47 0.54 | 70% 77.47 77.85 77.47 6:14pm
CLQ24 AUG 24 77.06 77.06 0.52 | 68% 77.06 77.39 77.06 6:12pm
CLU24 SEP 24 76.67 76.67 0.49 | 64% 76.67 77.31 76.67 6:14pm
CLV24 OCT 24 76.31 76.31 0.47 | 62% 76.31 76.63 76.31 6:12pm
CLX24 NOV 24 75.99 75.99 0.45 | 60% 75.99 76.29 75.99 6:13pm
CLZ24 DEC 24 75.52 75.52 -0.13 | -17% 75.29 75.57 75.14 11:18pm
CLF25 JAN 25 75.25 75.25 0.30 | 40% 75.25 75.64 75.25 6:12pm
CLG25 FEB 25 74.87 74.87 0.31 | 42% 74.87 75.19 74.87 4:37pm
CLH25 MAR 25 74.51 74.51 0.29 | 39% 74.51 74.84 74.51 4:37pm
CLJ25 APR 25 74.17 74.17 0.25 | 34% 74.17 74.48 74.17 4:39pm
CLK25 MAY 25 73.89 73.89 0.24 | 33% 73.89 73.89 73.89 4:37pm
CLM25 JUN 25 73.60 73.60 0.22 | 30% 73.60 74.30 73.30 6:12pm
CLN25 JUL 25 73.26 73.26 0.20 | 27% 73.26 73.26 73.26 6:13pm
CLQ25 AUG 25 72.92 72.92 0.20 | 28% 72.92 72.92 72.92 4:37pm
CLU25 SEP 25 72.63 72.63 0.19 | 26% 72.63 72.63 72.63 6:14pm
CLV25 OCT 25 72.36 72.36 0.17 | 24% 72.36 72.36 72.36 4:38pm
CLX25 NOV 25 72.15 72.15 0.14 | 19% 72.15 72.15 72.15 4:37pm
CLZ25 DEC 25 71.94 71.94 0.14 | 19% 72.20 72.73 71.45 6:13pm
CLF26 JAN 26 71.64 71.64 0.14 | 20% 71.64 71.64 71.64 6:12pm
CLG26 FEB 26 71.30 71.30 0.14 | 20% 71.30 71.30 71.30 4:37pm
CLH26 MAR 26 70.98 70.98 0.12 | 17% 70.98 70.98 70.98 4:38pm
CLJ26 APR 26 70.69 70.69 0.10 | 14% 70.69 70.69 70.69 4:38pm
CLK26 MAY 26 70.46 70.46 0.09 | 13% 70.46 70.46 70.46 4:37pm
CLM26 JUN 26 70.25 70.25 0.07 | 10% 70.25 70.25 70.25 4:37pm
CLN26 JUL 26 70.02 70.02 0.07 | 10% 70.02 70.02 70.02 4:38pm
CLQ26 AUG 26 69.75 69.75 0.06 | 9% 69.75 69.75 69.75 4:38pm
CLU26 SEP 26 69.57 69.57 0.06 | 9% 69.57 69.57 69.57 4:37pm
CLV26 OCT 26 69.40 69.40 0.05 | 7% 69.40 69.40 69.40 4:38pm
CLX26 NOV 26 69.17 69.17 0.05 | 7% 69.17 69.17 69.17 4:37pm
CLZ26 DEC 26 68.98 68.98 0.04 | 6% 68.98 69.20 68.98 6:12pm
CLF27 JAN 27 68.70 68.70 0.04 | 6% 68.70 68.70 68.70 4:38pm
CLG27 FEB 27 68.39 68.39 0.04 | 6% 68.39 68.39 68.39 4:38pm
CLH27 MAR 27 68.19 68.19 0.04 | 6% 68.19 68.19 68.19 4:38pm
CLJ27 APR 27 68.02 68.02 0.03 | 4% 68.02 68.02 68.02 4:38pm
CLK27 MAY 27 67.80 67.80 0.03 | 4% 67.80 67.80 67.80 4:37pm
CLM27 JUN 27 67.62 67.62 0.03 | 4% 67.62 67.62 67.62 4:38pm
CLN27 JUL 27 67.41 67.41 0.03 | 4% 67.41 67.41 67.41 4:38pm
CLQ27 AUG 27 67.19 67.19 0.03 | 4% 67.19 67.19 67.19 4:37pm
CLU27 SEP 27 67.02 67.02 0.03 | 4% 67.02 67.02 67.02 4:39pm
CLV27 OCT 27 66.86 66.86 0.02 | 3% 66.86 66.86 66.86 4:37pm
CLX27 NOV 27 66.77 66.77 0.02 | 3% 66.77 66.77 66.77 4:37pm
CLZ27 DEC 27 66.66 66.66 0.02 | 3% 66.66 66.66 66.66 6:12pm
CLF28 JAN 28 66.48 66.48 0.02 | 3% 66.48 66.48 66.48 4:39pm
CLG28 FEB 28 66.26 66.26 0.02 | 3% 66.26 66.26 66.26 4:38pm
CLH28 MAR 28 66.06 66.06 0.02 | 3% 66.06 66.06 66.06 4:39pm
CLJ28 APR 28 65.93 65.93 0.01 | 2% 65.93 65.93 65.93 4:38pm
CLK28 MAY 28 65.78 65.78 0.01 | 2% 65.78 65.78 65.78 4:39pm
CLM28 JUN 28 65.73 65.73 -0.01 | -2% 65.73 65.73 65.73 4:38pm
CLN28 JUL 28 65.67 65.67 0.01 | 2% 65.67 65.67 65.67 4:37pm
CLQ28 AUG 28 65.53 65.53 0.00 | 0% 65.53 65.53 65.53 4:38pm
CLU28 SEP 28 65.44 65.44 0.00 | 0% 65.44 65.44 65.44 4:38pm
CLV28 OCT 28 65.29 65.29 0.00 | 0% 65.29 65.29 65.29 4:39pm
CLX28 NOV 28 65.15 65.15 -0.01 | -2% 65.15 65.15 65.15 4:39pm
CLZ28 DEC 28 65.02 65.02 -0.03 | -5% 65.02 65.02 65.02 6:12pm
CLF29 JAN 29 64.92 64.92 -0.03 | -5% 64.92 64.92 64.92 4:38pm
CLG29 FEB 29 64.85 64.85 -0.03 | -5% 64.85 64.85 64.85 4:39pm
CLH29 MAR 29 64.82 64.82 -0.03 | -5% 64.82 64.82 64.82 4:38pm
CLJ29 APR 29 64.81 64.81 -0.03 | -5% 64.81 64.81 64.81 4:38pm
CLK29 MAY 29 64.73 64.73 -0.03 | -5% 64.73 64.73 64.73 4:38pm
CLM29 JUN 29 64.46 64.46 -0.03 | -5% 64.46 64.46 64.46 4:39pm
CLN29 JUL 29 64.43 64.43 -0.03 | -5% 64.43 64.43 64.43 4:39pm
CLQ29 AUG 29 64.34 64.34 -0.03 | -5% 64.34 64.34 64.34 4:38pm
CLU29 SEP 29 64.23 64.23 -0.03 | -5% 64.23 64.23 64.23 4:39pm
CLV29 OCT 29 64.16 64.16 -0.03 | -5% 64.16 64.16 64.16 4:38pm
CLX29 NOV 29 64.09 64.09 -0.03 | -5% 64.09 64.09 64.09 4:37pm
CLZ29 DEC 29 64.02 64.02 -0.03 | -5% 64.02 64.02 64.02 6:12pm
CLF30 JAN 30 63.97 63.97 -0.03 | -5% 63.97 63.97 63.97 4:38pm
CLG30 FEB 30 63.91 63.91 -0.03 | -5% 63.91 63.91 63.91 4:39pm
CLH30 MAR 30 63.82 63.82 -0.03 | -5% 63.82 63.82 63.82 4:39pm
CLJ30 APR 30 63.74 63.74 -0.03 | -5% 63.74 63.74 63.74 4:37pm
CLK30 MAY 30 63.66 63.66 -0.03 | -5% 63.66 63.66 63.66 4:38pm
CLM30 JUN 30 63.59 63.59 -0.03 | -5% 63.59 63.59 63.59 6:14pm
CLN30 JUL 30 63.81 63.81 -0.03 | -5% 63.81 63.81 63.81 4:38pm
CLQ30 AUG 30 63.78 63.78 -0.03 | -5% 63.78 63.78 63.78 4:37pm
CLU30 SEP 30 63.74 63.74 -0.03 | -5% 63.74 63.74 63.74 4:38pm
CLV30 OCT 30 63.70 63.70 -0.03 | -5% 63.70 63.70 63.70 4:38pm
CLX30 NOV 30 63.65 63.65 -0.03 | -5% 63.65 63.65 63.65 4:37pm
CLZ30 DEC 30 63.30 63.30 -0.03 | -5% 63.30 63.30 63.30 6:13pm
CLF31 JAN 31 63.61 63.61 -0.03 | -5% 63.61 63.61 63.61 4:38pm
CLG31 FEB 31 63.66 63.66 -0.03 | -5% 63.66 63.66 63.66 4:37pm
CLH31 MAR 31 63.69 63.69 -0.03 | -5% 63.69 63.69 63.69 4:38pm
CLJ31 APR 31 63.69 63.69 -0.03 | -5% 63.69 63.69 63.69 4:37pm
CLK31 MAY 31 63.66 63.66 -0.03 | -5% 63.66 63.66 63.66 4:38pm
CLM31 JUN 31 63.25 63.25 -0.03 | -5% 63.25 63.25 63.25 4:38pm
CLN31 JUL 31 63.57 63.57 -0.03 | -5% 63.57 63.57 63.57 4:38pm
CLQ31 AUG 31 63.51 63.51 -0.03 | -5% 63.51 63.51 63.51 4:39pm
CLU31 SEP 31 63.50 63.50 -0.03 | -5% 63.50 63.50 63.50 4:38pm
CLV31 OCT 31 63.53 63.53 -0.03 | -5% 63.53 63.53 63.53 4:38pm
CLX31 NOV 31 63.58 63.58 -0.03 | -5% 63.58 63.58 63.58 4:38pm
CLZ31 DEC 31 63.30 63.30 -0.03 | -5% 63.30 63.30 63.30 6:14pm
CLF32 JAN 32 63.61 63.61 -0.03 | -5% 63.61 63.61 63.61 6:57pm
CLG32 FEB 32 63.76 63.76 -0.03 | -5% 63.76 63.76 63.76 6:57pm
CLH32 MAR 32 63.81 63.81 -0.03 | -5% 63.81 63.81 63.81 6:57pm
CLJ32 APR 32 63.83 63.83 -0.03 | -5% 63.83 63.83 63.83 6:57pm
CLK32 MAY 32 63.81 63.81 -0.03 | -5% 63.81 63.81 63.81 6:57pm
CLM32 JUN 32 63.62 63.62 -0.03 | -5% 63.62 63.62 63.62 6:57pm
CLN32 JUL 32 63.64 63.64 -0.03 | -5% 63.64 63.64 63.64 6:57pm
CLQ32 AUG 32 63.62 63.62 -0.03 | -5% 63.62 63.62 63.62 4:38pm
CLU32 SEP 32 63.64 88.17 -0.03 | -5% 63.64 63.64 63.64 4:37pm
CLV32 OCT 32 63.70 87.72 -0.03 | -5% 63.70 63.70 63.70 4:39pm
CLX32 NOV 32 63.80 87.36 -0.03 | -5% 63.80 63.80 63.80 4:37pm
CLZ32 DEC 32 63.55 86.80 -0.03 | -5% 63.55 63.55 63.55 4:37pm
CLF33 JAN 33 63.67 86.36 -0.03 | -5% 63.67 63.67 63.67 4:38pm
CLG33 FEB 33 63.84 85.65 -0.03 | -5% 63.84 63.84 63.84 4:39pm
All quotes are delayed snapshots
demand-destruction event in history,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago.

On Friday, oil futures settled 23 cents higher to $86.23 a barrel on the New York Mercantile Exchange. Friday’s mild gain for Nymex oil futures pared losses to about 4% over the week after some mixed economic data.

Over in London, December Brent crude settled at $109.44 a barrel, down 11 cents, or 0.1%, on ICE Futures.

Back in the United States, natural-gas futures also found support. the November contract expired as of the price settlement Monday.

Natural gas for delivery in November rose 7 cents, or 2.1%, at $3.47 per million British thermal units.

December natural gas settled at $3.80, up 8 cents, or 2.1%.

For natural gas, “I think it’s more the thrill of the hurricane on settlement day than anything,” said Beth Sewell, managing partner at Quantum Power & Gas Services. The “reality is demand will drop a lot while the power is out, so there’s no reason to rally — other than short covering.”

Source: www.marketwatch.com