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)
CLX21 NOV 21 75.02 75.02 1.04 | 141% 74.19 75.33 74.16 5:33am
CLZ21 DEC 21 74.65 74.65 1.04 | 141% 73.83 74.92 73.79 5:33am
CLF22 JAN 22 74.08 74.08 1.01 | 138% 73.24 74.35 73.23 5:33am
CLG22 FEB 22 73.51 73.51 1.04 | 144% 72.56 73.70 72.56 5:30am
CLH22 MAR 22 72.92 72.92 1.07 | 149% 72.24 73.06 72.19 5:31am
CLJ22 APR 22 72.30 72.30 1.06 | 149% 71.55 72.42 71.55 5:31am
CLK22 MAY 22 71.69 71.69 1.05 | 149% 71.04 71.72 70.83 5:32am
CLM22 JUN 22 71.04 71.04 1.02 | 146% 70.27 71.17 70.17 5:33am
CLN22 JUL 22 70.17 70.17 0.77 | 111% 69.99 70.47 69.99 2:05am
CLQ22 AUG 22 69.47 69.47 0.69 | 100% 69.04 69.66 69.04 2:40am
CLU22 SEP 22 69.16 69.16 0.97 | 142% 68.33 69.22 68.33 5:33am
CLV22 OCT 22 68.35 68.35 0.72 | 106% 68.33 68.35 68.33 10:43pm
CLX22 NOV 22 67.12 67.12 0.44 | 66% 66.51 67.23 66.30 6:03pm
CLZ22 DEC 22 67.57 67.57 0.94 | 141% 66.96 67.62 66.74 5:33am
CLF23 JAN 23 66.75 66.75 0.66 | 100% 66.75 66.75 66.75 9:34pm
CLG23 FEB 23 65.56 65.56 0.36 | 55% 65.56 65.56 65.56 6:03pm
CLH23 MAR 23 65.05 65.05 0.34 | 53% 65.05 65.05 64.69 6:03pm
CLJ23 APR 23 64.57 64.57 0.32 | 50% 64.57 64.57 64.57 6:03pm
CLK23 MAY 23 64.11 64.11 0.30 | 47% 64.11 64.11 64.11 6:03pm
CLM23 JUN 23 64.23 64.23 0.55 | 86% 63.90 64.43 63.90 2:33am
CLN23 JUL 23 63.22 63.22 0.26 | 41% 63.22 63.22 63.22 6:03pm
CLQ23 AUG 23 62.79 62.79 0.24 | 38% 62.79 62.79 62.79 6:03pm
CLU23 SEP 23 62.39 62.39 0.22 | 35% 62.39 62.39 62.39 6:03pm
CLV23 OCT 23 62.01 62.01 0.21 | 34% 62.01 62.01 62.01 6:03pm
CLX23 NOV 23 61.65 61.65 0.20 | 33% 61.65 61.65 61.65 6:03pm
CLZ23 DEC 23 62.08 62.08 0.78 | 127% 61.46 62.08 61.38 5:29am
CLF24 JAN 24 60.90 60.90 0.16 | 26% 60.90 60.90 60.90 6:03pm
CLG24 FEB 24 60.70 60.70 0.18 | 30% 60.70 60.70 60.70 5:35pm
CLH24 MAR 24 60.17 60.17 0.12 | 20% 60.17 60.17 60.17 6:03pm
CLJ24 APR 24 59.83 59.83 0.11 | 18% 59.83 59.83 59.83 6:03pm
CLK24 MAY 24 59.50 59.50 0.10 | 17% 59.50 59.50 59.50 6:03pm
CLM24 JUN 24 59.55 59.55 0.36 | 61% 59.47 59.55 59.47 8:45pm
CLN24 JUL 24 58.86 58.86 0.10 | 17% 58.86 58.86 58.86 6:03pm
CLQ24 AUG 24 58.57 58.57 0.09 | 15% 58.57 58.57 58.57 6:03pm
CLU24 SEP 24 58.28 58.28 0.08 | 14% 58.28 58.28 58.28 6:03pm
CLV24 OCT 24 58.01 58.01 0.07 | 12% 58.01 58.01 58.01 6:03pm
CLX24 NOV 24 57.74 57.74 0.05 | 9% 57.74 57.74 57.74 6:03pm
CLZ24 DEC 24 58.01 58.01 0.53 | 92% 57.78 58.01 57.78 4:44am
CLF25 JAN 25 57.17 57.17 0.04 | 7% 57.17 57.17 57.17 6:03pm
CLG25 FEB 25 56.95 56.95 0.04 | 7% 56.95 56.95 56.95 6:03pm
CLH25 MAR 25 56.71 56.71 0.04 | 7% 56.71 56.71 56.71 6:03pm
CLJ25 APR 25 56.48 56.48 0.04 | 7% 56.48 56.48 56.48 6:03pm
CLK25 MAY 25 56.21 56.21 0.01 | 2% 56.21 56.21 56.21 6:03pm
CLM25 JUN 25 55.99 55.99 -0.01 | -2% 55.99 55.99 55.99 6:03pm
CLN25 JUL 25 55.74 55.74 -0.01 | -2% 55.74 55.74 55.74 6:03pm
CLQ25 AUG 25 55.58 55.58 -0.02 | -4% 55.58 55.58 55.58 6:03pm
CLU25 SEP 25 55.45 55.45 -0.02 | -4% 55.45 55.45 55.45 6:03pm
CLV25 OCT 25 55.15 55.15 -0.02 | -4% 55.15 55.15 55.15 6:03pm
CLX25 NOV 25 55.02 55.02 -0.03 | -5% 55.02 55.02 55.02 6:03pm
CLZ25 DEC 25 55.25 55.25 0.41 | 75% 55.20 55.25 55.00 3:25am
CLF26 JAN 26 54.59 54.59 -0.03 | -5% 54.59 54.59 54.59 6:03pm
CLG26 FEB 26 54.54 54.54 -0.03 | -5% 54.54 54.54 54.54 6:03pm
CLH26 MAR 26 54.35 54.35 -0.03 | -6% 54.35 54.35 54.35 6:03pm
CLJ26 APR 26 54.18 54.18 -0.03 | -6% 54.18 54.18 54.18 6:03pm
CLK26 MAY 26 54.08 54.08 -0.03 | -6% 54.08 54.08 54.08 6:03pm
CLM26 JUN 26 53.91 53.91 -0.03 | -6% 53.91 53.91 53.91 6:03pm
CLN26 JUL 26 53.72 53.72 -0.03 | -6% 53.72 53.72 53.72 6:03pm
CLQ26 AUG 26 53.68 53.68 -0.03 | -6% 53.68 53.68 53.68 6:03pm
CLU26 SEP 26 53.54 53.54 -0.03 | -6% 53.54 53.54 53.54 6:03pm
CLV26 OCT 26 53.43 53.43 -0.03 | -6% 53.43 53.43 53.43 6:03pm
CLX26 NOV 26 53.30 53.30 -0.03 | -6% 53.30 53.30 53.30 6:03pm
CLZ26 DEC 26 53.19 53.19 -0.03 | -6% 53.19 53.19 53.19 6:03pm
CLF27 JAN 27 53.08 53.08 -0.03 | -6% 53.08 53.08 53.08 6:03pm
CLG27 FEB 27 52.98 52.98 -0.03 | -6% N/A 52.98 52.98 7:31pm
CLH27 MAR 27 52.93 52.93 -0.03 | -6% N/A 52.93 52.93 7:31pm
CLJ27 APR 27 52.84 52.84 -0.03 | -6% N/A 52.84 52.84 7:31pm
CLK27 MAY 27 52.79 52.79 -0.03 | -6% N/A 52.79 52.79 7:31pm
CLM27 JUN 27 52.72 52.72 -0.03 | -6% N/A 52.72 52.72 7:31pm
CLN27 JUL 27 52.65 52.65 -0.03 | -6% N/A 52.65 52.65 7:31pm
CLQ27 AUG 27 52.61 52.61 -0.03 | -6% N/A 52.61 52.61 7:31pm
CLU27 SEP 27 52.60 52.60 -0.03 | -6% N/A 52.60 52.60 7:31pm
CLV27 OCT 27 52.50 52.50 -0.03 | -6% N/A 52.50 52.50 7:31pm
CLX27 NOV 27 52.42 52.42 -0.03 | -6% N/A 52.42 52.42 7:31pm
CLZ27 DEC 27 52.35 52.35 -0.03 | -6% 52.35 52.35 52.35 6:03pm
CLF28 JAN 28 52.26 52.26 -0.03 | -6% 52.26 52.26 52.26 6:03pm
CLG28 FEB 28 52.29 52.29 -0.03 | -6% N/A 52.29 52.29 7:31pm
CLH28 MAR 28 52.27 52.27 -0.03 | -6% N/A 52.27 52.27 7:31pm
CLJ28 APR 28 52.28 52.28 -0.03 | -6% N/A 52.28 52.28 7:31pm
CLK28 MAY 28 52.27 52.27 -0.03 | -6% N/A 52.27 52.27 7:31pm
CLM28 JUN 28 52.24 52.24 -0.03 | -6% N/A 52.24 52.24 7:31pm
CLN28 JUL 28 52.30 52.30 -0.03 | -6% N/A 52.30 52.30 7:31pm
CLQ28 AUG 28 52.30 52.30 -0.03 | -6% N/A 52.30 52.30 7:31pm
CLU28 SEP 28 52.29 52.29 -0.03 | -6% N/A 52.29 52.29 7:31pm
CLV28 OCT 28 52.30 52.30 -0.03 | -6% N/A 52.30 52.30 7:31pm
CLX28 NOV 28 52.29 52.29 -0.03 | -6% N/A 52.29 52.29 7:31pm
CLZ28 DEC 28 52.25 52.25 -0.03 | -6% 52.25 52.25 52.25 6:03pm
CLF29 JAN 29 52.34 52.34 -0.03 | -6% N/A 52.34 52.34 7:31pm
CLG29 FEB 29 52.35 52.35 -0.03 | -6% N/A 52.35 52.35 7:31pm
CLH29 MAR 29 52.41 52.41 -0.03 | -6% N/A 52.41 52.41 7:31pm
CLJ29 APR 29 52.45 52.45 -0.03 | -6% N/A 52.45 52.45 7:31pm
CLK29 MAY 29 52.49 52.49 -0.03 | -6% N/A 52.49 52.49 7:31pm
CLM29 JUN 29 52.43 52.43 -0.03 | -6% N/A 52.43 52.43 7:31pm
CLN29 JUL 29 52.48 52.48 -0.03 | -6% N/A 52.48 52.48 7:31pm
CLQ29 AUG 29 52.50 52.50 -0.03 | -6% N/A 52.50 52.50 7:31pm
CLU29 SEP 29 52.52 52.52 -0.03 | -6% N/A 52.52 52.52 7:31pm
CLV29 OCT 29 52.54 52.54 -0.03 | -6% N/A 52.54 52.54 7:31pm
CLX29 NOV 29 52.55 52.55 -0.03 | -6% N/A 52.55 52.55 7:31pm
CLZ29 DEC 29 52.55 52.55 -0.03 | -6% 52.55 52.55 52.55 6:03pm
CLF30 JAN 30 52.62 52.62 -0.03 | -6% N/A 52.62 52.62 7:31pm
CLG30 FEB 30 52.67 52.67 -0.03 | -6% N/A 52.67 52.67 7:31pm
CLH30 MAR 30 52.69 52.69 -0.03 | -6% N/A 52.69 52.69 7:31pm
CLJ30 APR 30 52.71 52.71 -0.03 | -6% N/A 52.71 52.71 7:31pm
CLK30 MAY 30 52.73 52.73 -0.03 | -6% N/A 52.73 52.73 7:31pm
CLM30 JUN 30 52.77 52.77 -0.03 | -6% N/A 52.77 52.77 7:31pm
CLN30 JUL 30 52.79 52.79 -0.03 | -6% N/A 52.79 52.79 7:31pm
CLQ30 AUG 30 52.82 52.82 -0.03 | -6% N/A 52.82 52.82 7:31pm
CLU30 SEP 30 52.83 52.83 -0.03 | -6% N/A 52.83 52.83 7:31pm
CLV30 OCT 30 52.84 52.84 -0.03 | -6% N/A 52.84 52.84 7:31pm
CLX30 NOV 30 52.85 52.85 -0.03 | -6% N/A 52.85 52.85 7:31pm
CLZ30 DEC 30 52.85 52.85 -0.03 | -6% 52.85 52.85 52.85 6:03pm
CLF31 JAN 31 52.93 52.93 -0.03 | -6% 52.93 52.93 52.93 7:02pm
CLG31 FEB 31 53.01 53.01 -0.03 | -6% 53.01 53.01 53.01 7:02pm
CLH31 MAR 31 53.07 53.07 -0.03 | -6% 53.07 53.07 53.07 7:02pm
CLJ31 APR 31 53.10 53.10 -0.03 | -6% 53.10 53.10 53.10 7:02pm
CLK31 MAY 31 53.10 53.10 -0.03 | -6% 53.10 53.10 53.10 7:02pm
CLM31 JUN 31 53.05 53.05 -0.03 | -6% 53.05 53.05 53.05 7:02pm
CLN31 JUL 31 53.06 53.06 -0.03 | -6% 53.06 53.06 53.06 7:02pm
CLQ31 AUG 31 53.04 53.04 -0.03 | -6% 53.04 53.04 53.04 7:02pm
CLU31 SEP 31 53.06 53.06 -0.03 | -6% N/A 53.06 53.06 7:31pm
CLV31 OCT 31 53.11 53.11 -0.03 | -6% N/A 53.11 53.11 7:31pm
CLX31 NOV 31 74.93 74.93 21.73 | 4085% 74.19 75.33 74.17 5:19am
CLZ31 DEC 31 74.58 74.58 21.43 | 4032% 73.96 74.92 73.79 5:19am
CLF32 JAN 32 73.97 73.97 20.70 | 3886% 73.30 74.35 73.23 5:17am
CLG32 FEB 32 73.37 73.37 19.93 | 3729% 72.56 73.70 72.56 5:14am
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