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New York Mercantile Exchange News

14 Jun 2022

U.S. Natgas up 2% on Higher Demand, Soaring Global Prices

Copyright Jon Le-Bon/AdobeStock

U.S. natural gas futures edged up about 2% on Tuesday on record power demand in Texas, forecasts for more gas demand over the next two weeks than previously expected, a reduction in gas output, low wind power and much higher global gas prices.Power demand in Texas failed to hit a new all-time high on Monday due to less hot weather, but will likely break peak use records on Tuesday and later this week as homes and businesses keep air conditioners cranked up to escape a lingering heatwave.

30 Nov 2017

Rising US LNG Exports Boost Interest in Natgas Futures

© Anatoly Kolodey / Adobe Stock

A surge in speculative interest in the U.S. liquefied natural gas (LNG) export boom has pushed open interest in natural gas futures to an all-time high, traders said on Thursday. Open interest, which measures the number of contracts outstanding, in the Henry Hub front-month hit 386,826 on the New York Mercantile Exchange on Wednesday, topping the previous high of 366,383 set in May 2016, according to Reuters data going back to 1990. "There has been a narrative around the market that the LNG exports are going to be the difference maker this winter…

12 Apr 2017

New US Pipelines to Drive Natural Gas Boom as Exports Surge

© Yauheni Chazlou / Adobe Stock

U.S. energy firms are scrambling to finish a slew of pipelines that will unleash rich reserves of shale gas in Pennsylvania, West Virginia and Ohio as the nation prepares to become one of the world’s top natural gas exporters. The pipelines are expected to boost output from shale fields in the three states by giving producers access to new domestic and international markets. Those states could supply about a third of all U.S. natural gas once the pipeline expansion is complete, up from about 25 percent now, according to projections from the U.S. Energy Information Administration (EIA).

22 Mar 2017

ICE to Offer First US Gulf Coast LNG Futures Contract

With the United States about to become a net exporter of natural gas for the first time in 60 years, Intercontinental Exchange Inc said on Wednesday it would begin trading the first-ever U.S. liquefied natural gas futures contract in May. ICE said the contracts would be cash-settled against the Platts LNG Gulf Coast Marker price assessment and use Platts-derived U.S. GCM LNG forward curves for daily settlement purposes. The curves will have an initial term of 48 months. "Domestic and international market participants now have a risk-management solution that lays the foundation for a more effective means of hedging their spot and forward exposure," J.C. Kneale, ICE's vice president, North American power and natural gas markets, said in a statement. U.S.

22 Nov 2016

As Operators Look for the Bottom, Gulf Gloom Persists

Credit: Yesenia Rodriguez

Gulf of Mexico vessel operators want to see sustained, higher oil prices. After a rough two years, supply boat owners and operators in the Gulf of Mexico hope crude oil prices will improve in 2017. That would encourage activity among the offshore drillers that they service and would put unemployed boats back in the water. Vessel owners aren’t necessarily banking on a good year ahead, however. “Utilization of OSVs and PSVs in the Gulf is below 50 percent now, down from about 70 percent a year ago and 90 percent two years ago…

04 Mar 2016

U.S. NatGas Futures Test 1995 Lows

U.S. natural gas futures on Friday sank to within a penny of a 1995 low as drillers continue to pull near record amounts of gas out of the ground despite forecasts for warm weather and light heating demand and with stockpiles at record high levels. Front-month gas futures on the New York Mercantile Exchange were down 2.3 cents, or 1.4 percent, to $1.616 per million British thermal units at 7:27 a.m. EST (227GMT), the lowest level since August 1998. If the contract falls below $1.61, it would drop to the lowest level since September 1995. Futures have been on a downward spiral for months. So far this year, the front-month has collapsed over 30 percent. Friday's decline puts the front-month on track for a sixth down week in a row, the longest losing streak since January 2015.

18 Dec 2015

US Oil Drillers Add Rigs for First Week in Five

U.S. energy firms this week added oil rigs for the first time in the last five weeks, data showed on Friday, despite continued weak crude prices. Drillers added 17 oil rigs in the week ended Dec. 18, bringing the total rig count up to 541, oil services company Baker Hughes Inc said in its closely followed report. That is about a third of the 1,536 oil rigs operating in same week a year ago. Since the end of the summer, drillers have cut 151 oil rigs. The additions this week showed that at least some drillers were willing to start drilling again even with U.S. oil prices trading below $40 a barrel in hopes of higher prices in the future. U.S.

11 Dec 2015

US Oil Drillers Cut Rigs for 14th Week in 15

U.S. energy firms this week cut oil rigs for a 14th week in the last 15, data showed on Friday, a sign drillers were still waiting for higher prices before returning to the well pad. Drillers removed 21 oil rigs in the week ended Dec. 11, bringing the total rig count down to 524, the least since April 2010, oil services company Baker Hughes Inc said in its closely followed report. The decline was the sharpest since October. That decrease brings the total rig count down to about a third of the 1,546 oil rigs operating in same week a year ago. Since the end of the summer, drillers have cut 130 oil rigs. U.S. crude oil futures averaged $37 a barrel so far this week, down from $41 last week. On Friday, U.S.

04 Dec 2015

US Oil Rigs Cut for 13th Week in 14

U.S. energy firms this week cut oil rigs for the 13th week in the last 14, data showed on Friday, a sign drillers were still waiting for higher prices before returning to the well pad. On Friday, OPEC decided to keep production near record highs despite depressed prices, as a way to boost market share by forcing rivals to reduce output. Drillers removed 10 oil rigs in the week ended Dec. 4, bringing the total rig count down to 545, the least since June 2010, oil services company Baker Hughes Inc said in its closely followed report. That decrease brings the total rig count down to about a third of the 1,575 oil rigs operating in same week a year ago. Since the end of the summer, drillers have cut 120 oil rigs. U.S. oil futures averaged $41 a barrel so far this week, down from $42 last week.

13 Nov 2015

US Oil Drillers Add Rigs for First Week in 11

U.S. energy firms this week added oil rigs for the first week in 11, data showed on Friday, despite continued weak crude prices. Drillers added 2 oil rigs in the week ended Nov. 13, bringing the total rig count up to 574, oil services company Baker Hughes Inc said in its closely followed report. That total is about a third of the 1,578 oil rigs operating in same week a year ago. Over the prior 10 weeks, drillers cut 103 oil rigs. The additions this week showed that at least some drillers were willing to start drilling again even with U.S. oil prices trading in the $40s a barrel in hopes of higher prices in the future. U.S. oil futures averaged $43 a barrel so far this week, down from $46 last week.

02 Nov 2015

Oil Traders Scouting Further Afield for NY Diesel Storage

Oil traders are scouring the East Coast for places to store surplus diesel supplies, including on tankers just outside New York harbor, as prompt prices trade at their deepest discounts since the financial crisis. Kinder Morgan, which operates roughly 165 storage terminals from Los Angeles to New York, has received interest from traders looking to lease storage space beyond New York harbor, according to a source familiar with the company's operations. Such "non-conventional" storage is not typically the first choice for traders trying to make money off of the so-called "contango" in the market by buying cheap distillate fuel and locking in higher priced futures for several months hence.

26 Dec 2014

Oil slides, Brent tests $60

Global oil markets fell again on Wednesday in holiday-thin trade, extending more than a week of see-saw volatility as traders jousted over whether a growing supply glut had been fully priced in. Oil whipped lower early in the day and tested new lows after U.S. data showed crude inventories unexpectedly rose by 7.3 million barrels last week to their highest December level on record. Analysts had expected a seasonal draw. "It's a Christmas flood of oil at a time when refiners and producers usually are letting inventories get lower for end-of-year tax reasons," said Phil Flynn, analyst at Price Futures Group in Chicago. U.S. crude's front-month contract fell $1.28 to settle at $55.84 a barrel at 1:30 p.m.

31 Oct 2014

U.S. Drillers Cut Rigs to Lowest since August

Energy companies have reduced the number of rigs drilling for oil in the United States to the lowest since August, shifting more rigs in favor of natural gas as crude prices dive, data showed on Friday. The number of rigs drilling for oil fell by 13 to 1,582 in the latest week, the fourth weekly decline in the past six weeks, according to data from oil services firm Baker Hughes on Friday. Natural gas rigs rose by 14 to 346 rigs, the highest since February, the data show. "While the oil rig count might be down, we're cruising along at really high numbers," said Gene McGillian, a senior analyst at Tradition Energy. Despite the recent declines, the number of rigs seeking oil is up from 1,376 rigs a year ago and hit a high of 1,609 a few weeks ago, the most since at least 1987.

20 Dec 2012

Seaway Cargo Shipments Up 3%

Continued demand for iron ore, coal, and general cargo for the industrial and manufacturing sectors lifted the tonnage numbers along the Great Lakes-Seaway System to the positive column. For the period March 22 to November 30, year-to-date total cargo shipments were 34.6 million metric tons, a rise of 2.67 percent over the same period in 2011. The St. Lawrence Seaway reported an 11 percent increase for total cargo shipments during the month of November – 5.1 million metric tons – compared to November 2011. “The nearly 3 percent rise in overall tonnage handled through the Seaway in 2012 is due in part to the proven formula of ‘steel in, grain out’ as steel imports rose 12 percent in November as compared to the same month last year, and combined Canadian-U.S.

28 Aug 2008

Gustav Threatens Offshore Production

Forecasts say that Tropical Storm Gustav could regain hurricane strength and affect major offshore oil and natural gas production areas in the Gulf of Mexico also portend a significant threat to onshore energy sites, the Houston Chronicle reported. As they prepare for a possible hit from Gustav, operators of such facilities hope improvements they made in rebuilding after the 2005 storms will improve their odds of weathering the next one. Oil futures rose $1.87 to $118.14 a barrel Wednesday on the New York Mercantile Exchange. Natural gas increased 20.7 cents to $8.485 per million British thermal units. In preparation for the storm, offshore drillers began securing wells, pulling up equipment and bringing workers ashore on Wednesday.

24 Jul 2000

Gas Prices, Offshore Shares Fall In Tandem

Gasoline prices on the benchmark New York Mercantile Exchange (NYMEX) Monday dipped below 90 cents a gallon for the first time in nearly three months, signaling the end of this summer's red-hot run. After trading above a record $1.05 a gallon for most of June, front month gasoline futures have made a 16 percent dive to Monday's midday low of 88.50, the lowest intraday level seen since May 4. Gasoline last closed below 90 cents a gallon on May 3. The fall in gasoline prices, which amounts to over 20 cents since June and nearly ten cents over the past three trading days, comes amid a seasonal shift in the market from the summer driving season to the lag stage before the winter heating season heats up.

18 Sep 2000

U.S. Oil Prices Balloon To $37

U.S. oil prices ballooned to fresh decade highs on Monday as rising tension in the Middle East put traders on red alert over possible supply disruptions from key exporter Iraq this winter. October crude on the New York Mercantile Exchange bolted to a new high of $37.15 a barrel, up more than $1.20, as concern grew that Iraq could disrupt its supplies in the run-up to November's U.S. presidential election. Traders rushed to buy after a warning from Iraqi President Saddam Hussein that fellow OPEC member states should ignore pressure mounted by "superpowers" on producers to rein in runaway prices. next year.

13 Oct 2000

Oil Goes Higher As Mid East Tension Mounts

U.S. oil markets stayed on high alert Friday as traders watched for signs of further escalation in the Middle East's political crisis and of possible impact on tight oil supplies. Rising regional violence pushed crude oil prices up three dollars on Thursday as fears of a cut in Middle East oil flows at a time played on concern that the U.S. is heading into winter with a big deficit in heating fuel. November crude on the New York Mercantile Exchange eased 56 cents to $35.45 a barrel by midday, barely two dollars below post-Gulf War highs as traders watched for further fallout from Israeli forces' Thursday attack on Palestinian President Yasser Arafat's West Bank headquarters.

11 Dec 2000

USCG Considers Admitting Damaged Tanker

The U.S. Coast Guard is considering allowing a damaged tanker, carrying 285,000 barrels of gasoline, to unload its cargo in the New York Harbor before permanent repairs are made -- saving the vessel a long trip to its home port of Panama. "The Highland Faith (ship) has submitted a number of proposals that would allow it to offload its cargo," said Coast Guard spokesman John Hillin. "We are considering those (proposals) now." The 20-year-old Panamanian-flagged ship, which had been due into New York Harbor Dec. 5, was halted after a routine inspection revealed cracks on its deck and fuel vapors in its ballast tanks. As reported Friday, Coast Guard officials said no fuel had leaked into the water.

10 Jan 2001

U.S. Oil Prices Surge Nearly $2

U.S. oil prices rocketed almost two dollars Wednesday on word that Saudi Arabia would reduce February crude sales by five percent despite U.S. appeals to the OPEC cartel not to cut oil output too sharply, Reuters reported. February crude futures oil on the New York Mercantile Exchange (NYMEX) closed at $29.50, up $1.86 a barrel or some seven percent. This takes gains over the last eight trading sessions to more than $3.50 dollars a barrel. Saudi Arabia, which produced about 8.6 million barrels per day (bpd) or 11 percent of worldwide production in December has already said it will back a total OPEC output cut of 1.5 million bpd or around five percent when the cartel meets Jan. 17 in Vienna. U.S.

08 Jan 2001

U.S. Oil Prices March Forward

U.S. By early afternoon, crude oil for February delivery on the New York Mercantile Exchange was trading at $28.30 a barrel, a 35-cent rise, taking total gains in the last six trading sessions to $2.50 a barrel, or ten percent. A statement by OPEC Secretary-General Ali Rodriguez on Sunday spurred the day's advance. Rodriguez, the former energy minister of Venezuela said on Sunday that the 11-member producers' cartel had a consensus to cut crude oil supplies but had not decided by how much. "For the time being there is a consensus to cut but how much we don't know," Rodriguez said. Rodriguez's remarks came after the former Venezuelan energy minister met with departing U.S. Energy Secretary Richardson in Vienna.

18 Jan 2001

Bush Comments Buoy Oil Markets

U.S. oil prices rose Thursday as traders jumped at buying opportunities after OPEC's agreement on production cuts sent prices falling Wednesday. Crude oil for February delivery traded up 28 cents at $29.88 per barrel early Thursday afternoon on the New York Mercantile Exchange (NYMEX). "There's a feeling that perhaps we've run the course of the down side and the market could start making a move up, at least for the short term," said Nauman Barakat, vice president of energy futures trading at ABN Amro in New York. NYMEX crude ended 69 cents lower at $29.60 per barrel Wednesday, after moving down more than a dollar as traders pocketed profits.

18 Jan 2001

Bush Comments Buoy Oil Markets

U.S. oil prices rose Thursday as traders jumped at buying opportunities after OPEC's agreement on production cuts sent prices falling Wednesday. Crude oil for February delivery traded up 28 cents at $29.88 per barrel early Thursday afternoon on the New York Mercantile Exchange (NYMEX). "There's a feeling that perhaps we've run the course of the down side and the market could start making a move up, at least for the short term," said Nauman Barakat, vice president of energy futures trading at ABN Amro in New York. NYMEX crude ended 69 cents lower at $29.60 per barrel Wednesday, after moving down more than a dollar as traders pocketed profits.