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)
CLK21 MAY 21 63.13 63.13 -0.33 | -52% 63.32 63.88 62.83 4:42pm
CLM21 JUN 21 63.19 63.19 -0.32 | -50% 63.35 63.94 62.88 4:42pm
CLN21 JUL 21 63.09 63.09 -0.31 | -49% 63.31 63.82 62.81 4:42pm
CLQ21 AUG 21 62.81 62.81 -0.30 | -48% 63.04 63.52 62.57 4:42pm
CLU21 SEP 21 62.38 62.38 -0.29 | -46% 62.59 63.07 62.17 4:42pm
CLV21 OCT 21 61.88 61.88 -0.27 | -43% 62.13 62.57 61.67 4:42pm
CLX21 NOV 21 61.37 61.37 -0.28 | -45% 61.60 62.02 61.19 4:42pm
CLZ21 DEC 21 60.85 60.85 -0.30 | -49% 61.02 61.56 60.70 4:42pm
CLF22 JAN 22 60.35 60.35 -0.30 | -49% 60.60 61.05 60.25 4:42pm
CLG22 FEB 22 59.88 59.88 -0.29 | -48% 60.10 60.53 59.84 4:42pm
CLH22 MAR 22 59.44 59.44 -0.29 | -49% 59.67 60.10 59.39 4:42pm
CLJ22 APR 22 59.03 59.03 -0.30 | -51% 59.17 59.72 59.02 4:42pm
CLK22 MAY 22 58.67 58.67 -0.30 | -51% 58.90 59.11 58.67 4:42pm
CLM22 JUN 22 58.33 58.33 -0.30 | -51% 58.46 59.00 58.24 4:42pm
CLN22 JUL 22 57.98 57.98 -0.29 | -50% N/A 57.98 57.98 4:42pm
CLQ22 AUG 22 57.65 57.65 -0.29 | -50% N/A 57.65 57.65 4:42pm
CLU22 SEP 22 57.34 57.34 -0.29 | -50% N/A 57.34 57.34 4:42pm
CLV22 OCT 22 57.06 57.06 -0.28 | -49% N/A 57.06 57.06 4:42pm
CLX22 NOV 22 56.79 56.79 -0.28 | -49% N/A 56.79 56.79 4:42pm
CLZ22 DEC 22 56.53 56.53 -0.29 | -51% 56.70 57.20 56.45 4:42pm
CLF23 JAN 23 56.24 56.24 -0.30 | -53% N/A 56.24 56.24 4:42pm
CLG23 FEB 23 55.97 55.97 -0.31 | -55% N/A 55.97 55.97 4:42pm
CLH23 MAR 23 55.72 55.72 -0.31 | -55% N/A 55.72 55.72 4:42pm
CLJ23 APR 23 55.49 55.49 -0.30 | -54% N/A 55.49 55.49 4:42pm
CLK23 MAY 23 55.27 55.27 -0.30 | -54% N/A 55.27 55.27 4:42pm
CLM23 JUN 23 55.07 55.07 -0.31 | -56% 55.61 55.62 55.07 4:42pm
CLN23 JUL 23 54.85 54.85 -0.32 | -58% N/A 54.85 54.85 4:42pm
CLQ23 AUG 23 54.65 54.65 -0.32 | -58% N/A 54.65 54.65 4:42pm
CLU23 SEP 23 54.47 54.47 -0.32 | -58% N/A 54.47 54.47 4:42pm
CLV23 OCT 23 54.30 54.30 -0.33 | -60% N/A 54.30 54.30 4:42pm
CLX23 NOV 23 54.14 54.14 -0.33 | -61% N/A 54.14 54.14 4:42pm
CLZ23 DEC 23 53.99 53.99 -0.33 | -61% 54.17 54.68 53.95 4:42pm
CLF24 JAN 24 53.80 53.80 -0.33 | -61% N/A 53.80 53.80 4:42pm
CLG24 FEB 24 53.63 53.63 -0.33 | -61% N/A 53.63 53.63 4:42pm
CLH24 MAR 24 53.47 53.47 -0.35 | -65% N/A 53.47 53.47 4:42pm
CLJ24 APR 24 53.36 53.36 -0.34 | -63% N/A 53.36 53.36 4:42pm
CLK24 MAY 24 53.23 53.23 -0.32 | -60% N/A 53.23 53.23 4:42pm
CLM24 JUN 24 53.10 53.10 -0.34 | -64% N/A 53.10 53.10 4:42pm
CLN24 JUL 24 52.95 52.95 -0.36 | -68% N/A 52.95 52.95 4:42pm
CLQ24 AUG 24 52.87 52.87 -0.37 | -69% N/A 52.87 52.87 4:42pm
CLU24 SEP 24 52.79 52.79 -0.36 | -68% N/A 52.79 52.79 4:42pm
CLV24 OCT 24 52.72 52.72 -0.35 | -66% N/A 52.72 52.72 4:42pm
CLX24 NOV 24 52.59 52.59 -0.36 | -68% N/A 52.59 52.59 4:42pm
CLZ24 DEC 24 52.52 52.52 -0.37 | -70% N/A 53.08 52.52 4:42pm
CLF25 JAN 25 52.42 52.42 -0.38 | -72% N/A 52.42 52.42 4:42pm
CLG25 FEB 25 52.37 52.37 -0.38 | -72% N/A 52.37 52.37 4:42pm
CLH25 MAR 25 52.29 52.29 -0.39 | -74% N/A 52.29 52.29 4:42pm
CLJ25 APR 25 52.20 52.20 -0.39 | -74% N/A 52.20 52.20 4:42pm
CLK25 MAY 25 52.09 52.09 -0.40 | -76% N/A 52.09 52.09 4:42pm
CLM25 JUN 25 52.03 52.03 -0.40 | -76% N/A 52.03 52.03 4:42pm
CLN25 JUL 25 51.98 51.98 -0.41 | -78% N/A 51.98 51.98 4:42pm
CLQ25 AUG 25 51.91 51.91 -0.41 | -78% N/A 51.91 51.91 4:42pm
CLU25 SEP 25 51.88 51.88 -0.42 | -80% N/A 51.88 51.88 4:42pm
CLV25 OCT 25 51.80 51.80 -0.42 | -80% N/A 51.80 51.80 4:42pm
CLX25 NOV 25 51.79 51.79 -0.43 | -82% N/A 51.79 51.79 4:42pm
CLZ25 DEC 25 51.77 51.77 -0.43 | -82% N/A 51.77 51.77 4:42pm
CLF26 JAN 26 51.68 51.68 -0.43 | -83% N/A 51.68 51.68 4:42pm
CLG26 FEB 26 51.67 51.67 -0.43 | -83% N/A 51.67 51.67 4:42pm
CLH26 MAR 26 51.61 51.61 -0.43 | -83% N/A 51.61 51.61 4:42pm
CLJ26 APR 26 51.57 51.57 -0.43 | -83% N/A 51.57 51.57 4:42pm
CLK26 MAY 26 51.53 51.53 -0.43 | -83% N/A 51.53 51.53 4:42pm
CLM26 JUN 26 51.48 51.48 -0.43 | -83% N/A 51.48 51.48 4:42pm
CLN26 JUL 26 51.42 51.42 -0.43 | -83% N/A 51.42 51.42 4:42pm
CLQ26 AUG 26 51.47 51.47 -0.43 | -83% N/A 51.47 51.47 4:42pm
CLU26 SEP 26 51.42 51.42 -0.43 | -83% N/A 51.42 51.42 4:42pm
CLV26 OCT 26 51.43 51.43 -0.43 | -83% N/A 51.43 51.43 4:42pm
CLX26 NOV 26 51.41 51.41 -0.43 | -83% N/A 51.41 51.41 4:42pm
CLZ26 DEC 26 51.44 51.44 -0.43 | -83% N/A 51.44 51.44 4:42pm
CLF27 JAN 27 51.37 51.37 -0.43 | -83% N/A 51.37 51.37 4:42pm
CLG27 FEB 27 51.33 51.33 -0.43 | -83% N/A 51.33 51.33 4:42pm
CLH27 MAR 27 51.32 51.32 -0.43 | -83% N/A 51.32 51.32 4:42pm
CLJ27 APR 27 51.28 51.28 -0.43 | -83% N/A 51.28 51.28 4:42pm
CLK27 MAY 27 51.31 51.31 -0.43 | -83% N/A 51.31 51.31 4:42pm
CLM27 JUN 27 51.29 51.29 -0.43 | -83% N/A 51.29 51.29 4:42pm
CLN27 JUL 27 51.34 51.34 -0.43 | -83% N/A 51.34 51.34 4:42pm
CLQ27 AUG 27 51.32 51.32 -0.43 | -83% N/A 51.32 51.32 4:42pm
CLU27 SEP 27 51.35 51.35 -0.43 | -83% N/A 51.35 51.35 4:42pm
CLV27 OCT 27 51.32 51.32 -0.43 | -83% N/A 51.32 51.32 4:42pm
CLX27 NOV 27 51.33 51.33 -0.43 | -83% N/A 51.33 51.33 4:42pm
CLZ27 DEC 27 51.30 51.30 -0.43 | -83% N/A 51.30 51.30 4:42pm
CLF28 JAN 28 51.28 51.28 -0.43 | -83% N/A 51.28 51.28 4:42pm
CLG28 FEB 28 51.28 51.28 -0.43 | -83% N/A 51.28 51.28 4:42pm
CLH28 MAR 28 51.28 51.28 -0.43 | -83% N/A 51.28 51.28 4:42pm
CLJ28 APR 28 51.31 51.31 -0.43 | -83% N/A 51.31 51.31 4:42pm
CLK28 MAY 28 51.32 51.32 -0.43 | -83% N/A 51.32 51.32 4:42pm
CLM28 JUN 28 51.31 51.31 -0.43 | -83% N/A 51.31 51.31 4:42pm
CLN28 JUL 28 51.37 51.37 -0.43 | -83% N/A 51.37 51.37 4:42pm
CLQ28 AUG 28 51.39 51.39 -0.43 | -83% N/A 51.39 51.39 4:42pm
CLU28 SEP 28 51.40 51.40 -0.43 | -83% N/A 51.40 51.40 4:42pm
CLV28 OCT 28 51.43 51.43 -0.43 | -83% N/A 51.43 51.43 4:42pm
CLX28 NOV 28 51.43 51.43 -0.43 | -83% N/A 51.43 51.43 4:42pm
CLZ28 DEC 28 51.41 51.41 -0.43 | -83% N/A 51.41 51.41 4:42pm
CLF29 JAN 29 51.49 51.49 -0.43 | -83% N/A 51.49 51.49 4:42pm
CLG29 FEB 29 51.49 51.49 -0.43 | -83% N/A 51.49 51.49 4:42pm
CLH29 MAR 29 51.53 51.53 -0.43 | -83% N/A 51.53 51.53 4:42pm
CLJ29 APR 29 51.57 51.57 -0.43 | -83% N/A 51.57 51.57 4:42pm
CLK29 MAY 29 51.60 51.60 -0.43 | -83% N/A 51.60 51.60 4:42pm
CLM29 JUN 29 51.54 51.54 -0.43 | -83% N/A 51.54 51.54 4:42pm
CLN29 JUL 29 51.58 51.58 -0.43 | -83% N/A 51.58 51.58 4:42pm
CLQ29 AUG 29 51.60 51.60 -0.43 | -83% N/A 51.60 51.60 4:42pm
CLU29 SEP 29 51.61 51.61 -0.43 | -83% N/A 51.61 51.61 4:42pm
CLV29 OCT 29 51.64 51.64 -0.43 | -83% N/A 51.64 51.64 4:42pm
CLX29 NOV 29 51.67 51.67 -0.43 | -83% N/A 51.67 51.67 4:42pm
CLZ29 DEC 29 51.71 51.71 -0.43 | -82% N/A 51.71 51.71 4:42pm
CLF30 JAN 30 51.76 51.76 -0.43 | -82% N/A 51.76 51.76 4:42pm
CLG30 FEB 30 51.81 51.81 -0.43 | -82% N/A 51.81 51.81 4:42pm
CLH30 MAR 30 51.84 51.84 -0.43 | -82% N/A 51.84 51.84 4:42pm
CLJ30 APR 30 51.87 51.87 -0.43 | -82% 51.87 51.87 51.87 4:41pm
CLK30 MAY 30 51.90 51.90 -0.43 | -82% 51.90 51.90 51.90 4:41pm
CLM30 JUN 30 51.95 51.95 -0.43 | -82% 51.95 51.95 51.95 4:42pm
CLN30 JUL 30 52.01 52.01 -0.43 | -82% 52.01 52.01 52.01 4:42pm
CLQ30 AUG 30 52.05 52.05 -0.43 | -82% 52.05 52.05 52.05 4:41pm
CLU30 SEP 30 52.08 52.08 -0.43 | -82% 52.08 52.08 52.08 4:42pm
CLV30 OCT 30 52.10 52.10 -0.43 | -82% 52.10 52.10 52.10 4:41pm
CLX30 NOV 30 52.13 52.13 -0.43 | -82% 52.13 52.13 52.13 4:41pm
CLZ30 DEC 30 52.16 52.16 -0.43 | -82% 52.16 52.16 52.16 4:41pm
CLF31 JAN 31 52.24 52.24 -0.43 | -82% 52.24 52.24 52.24 4:41pm
CLG31 FEB 31 52.33 52.33 -0.43 | -82% 52.33 52.33 52.33 6:54pm
CLH31 MAR 31 52.39 52.39 -0.43 | -81% 52.39 52.39 52.39 4:42pm
CLJ31 APR 31 52.43 52.43 -0.43 | -81% 52.43 52.43 52.43 5:00pm
CLK31 MAY 31 52.43 52.43 -0.43 | -81% 52.43 52.43 52.43 6:20pm
CLM31 JUN 31 52.39 52.39 -0.43 | -81% 52.39 52.39 52.39 6:20pm
CLN31 JUL 31 52.40 52.40 -0.43 | -81% 52.40 52.40 52.40 6:20pm
CLQ31 AUG 31 52.39 52.39 -0.43 | -81% 52.39 52.39 52.39 6:20pm
CLU31 SEP 31 52.41 52.41 -0.43 | -81% 52.41 52.41 52.41 6:20pm
CLV31 OCT 31 52.47 52.47 -0.43 | -81% 52.47 52.47 52.47 6:20pm
CLX31 NOV 31 52.56 52.56 -0.43 | -81% 52.56 52.56 52.56 6:20pm
CLZ31 DEC 31 52.64 52.64 -0.43 | -81% 52.64 52.64 52.64 6:20pm
CLF32 JAN 32 52.76 52.76 -0.43 | -81% 52.76 52.76 52.76 6:20pm
CLG32 FEB 32 52.93 52.93 -0.43 | -81% 52.93 52.93 52.93 6:20pm
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