Natural Gas Falls Below $3 for First Time in More Than 2 Years

Natural-gas futures in New York dropped below $3 per British thermal units for the first time in more than two years as mild weather and rising production contribute to a growing U.S. stockpile surplus. Gas fell as much as 1.2 percent in electronic trading after an Energy Department report yesterday showed a smaller-than- forecast stockpile decline in the week ended Dec. 23. Supplies fell 81 billion cubic feet to 3.548 trillion, compared with the five-year average drop for the week of 122 billion cubic feet. Inventories were 13.7 percent above the weekly average. Natural gas for February delivery fell 3.6 cents to $2.991 per million British thermal units, the lowest intraday price since the fuel traded at $2.911 on Sept. 14, 2009. About 51 percent of U.S. households use natural gas for heating, according to the Energy Department. Gas has been falling as production at U.S. shale formations gained. The department said in a separate report yesterday that gas output in the lower 48 states rose 1.4 percent to 71.28 billion cubic feet a day in October.

Canada Stocks Losing to U.S. by Most Since ’98 as Commodity Shares Retreat

Canadian stocks (SPTSX) trailed U.S. equities this year by the most since 1998 as the European debt crisis and slowing growth in developing markets drove down commodity shares. The Standard & Poor’s/TSX Composite Index fell 12 percent (SPTSX) in 2011 through yesterday, while the S&P 500 rose 0.4 percent, the first year Canada has lagged behind the U.S. since 2003 and the widest gap since crude oil slid below $11 a barrel 13 years ago. Energy and mining stocks, almost half of Canada’s market by value, fell as Suncor Energy Inc. (SU), the country’s largest oil and gas producer, lost 24 percent and Teck Resources Ltd., its biggest base-metals company, plunged 43 percent. Canada’s oil, gas and metal shares slumped after valuations soared in 2009-2010, as oil prices doubled and copper tripled after the world pulled out of a recession, spurring a 50 percent surge in the S&P/TSX. This year, the level of the S&P/TSX Energy Index relative to profits fell as much as 43 percent, after hitting the highest multiple since at least 2002 in March. The Euribor-OIS spread, a measure of euro-region banks’ reluctance to lend to one another, increased sixfold from June 14 to Dec. 1 as the debt crisis spread. Growth of industrial production in China, the biggest user of base metals and second- largest oil consumer, fell to the lowest rate since August 2009 last month. The Thomson Reuters/Jefferies CRB commodity index plunged 18 percent from its post-2008 high on April 29 to yesterday.

EIA: Crude oil stockpiles added 2.9 million barrels in US last week

Crude oil prices were lower Wednesday after the US Energy Information Administration reported a gain in US stockpiles last week Tags: 355-7-million, crude oil, eia, energy, energy-information, last-week, million-barrel, million-barrels, oil, oil prices, stockpiles-last, wednesday

Oil Trades Near Six-Week High on Iran Threat to Strait of Hormuz Shipping

Oil traded near the highest level in six weeks after Iran threatened to block crude transportation through the Strait of Hormuz, increasing concern that global supplies will be curbed amid shrinking U.S. stockpiles. Futures were little changed after rising for a sixth day yesterday, the longest run of advances since November 2010. Iran’s official Islamic Republic News Agency cited Vice President Mohammad Reza Rahimi as saying the country would bar shipments through the strait if sanctions are imposed on its oil exports. U.S. oil inventories probably dropped for a third week, a Bloomberg News survey showed before an Energy Department report this week. Oil for February delivery was at $101.32 a barrel, down 2 cents, in electronic trading on the New York Mercantile Exchange at 1:43 p.m. Singapore time. It rose $1.66, or 1.7 percent, to $101.34 a barrel yesterday, the highest settlement since Nov. 16. Futures have climbed 11 percent this year after increasing 15 percent in 2010. Brent oil for February settlement was down 2 cents at $109.25 a barrel on the London-based ICE Futures Europe exchange. The European contract’s premium to crude in New York was unchanged at $7.93 a barrel, the smallest differential based on settlement prices since Jan. 20.

Iran minister says OPEC oil output not to be increased yet

OPEC member countries will not increase crude oil output just yet, according to the Iranian Oil Minister Massoud Mirkazemi who holds the OPEC rotating presidency. Speaking on Saturday, the minister told Mehr News Agency that there is no need for an OPEC emergency meeting in the current situation as the oil market is well balanced

How to invest in oil as Iran tensions build

As the year comes to a close, investors are finding themselves in a position they didn't expect: The U.S. economy looks to be growing more than most analysts anticipated. It is hard to say whether that growth will continue to accelerate next year. But signs that the economy may be improving have lifted oil prices already. That's partly because energy companies often lead the way during expansions as more trucks loaded with goods clog the highways and more workers fill up their tanks on the way to work. But don't run out and buy a giant energy company like Exxon Mobil Corp or Chevron Corp just yet. The uncertain dollar, the European Union and declining oil supplies will all likely affect oil prices in 2012. Oil plays in an uncertain world: The price of oil is notoriously hard to predict. Earthquakes, politics, and, increasingly, speculators can affect oil prices without notice. Iran's first vice-president warned on Tuesday that the flow of crude will be stopped from the crucial Strait of Hormuz in the Gulf if foreign sanctions are imposed on its oil exports. -- keeping the oil market on edge. Recent bombings in Iraq, meanwhile, are raising concerns about stability there after the U.S. military withdrawal. Investors do not have to wade too deeply into commodities to capture such gains. The United States Oil ETF tracks oil futures contracts closely. "This fund is an efficient and effective means" to speculate in oil, noted Abraham Bailin, an ETF analyst at Morningstar, although this ETF can generate unwanted tax liabilities. He cited the IPath S&P GSCI Crude Oil Total Return Index ETN as one that with a more straight-forward tax structure. GAS PRICES AND THE U.S. ECONOMY Europe's economic woes could keep a lid on oil prices. Several euro zone countries are expected to slide into recession in 2012. And if one or more countries abandon the European Union's single currency, the euro, the U.S. dollar would likely move higher. Either could cushion the impact of oil prices for U.S. buyers. If a stronger dollar softens the impact of oil prices, companies that focus on the U.S. domestic economy like retailers and car makers ripe for outperformance, she said. Small-cap stocks, which tend to be more immersed in the U.S. domestic market than the large cap companies, would likely benefit most from a dollar's climb, she said. The PowerShares DB US Dollar Bullish ETF, which tracks the performance of the dollar against an index of six currencies, is one ETF option. It is up about 1.5 percent in the past month.

Oil Heads for Third Yearly Gain on Iran Tension, U.S. Economy Speculation

Oil rose for a second day, heading for a third yearly increase, on speculation escalating tension in the Middle East may disrupt supplies as a recovery in the U.S. economy bolsters demand. Futures advanced for the eighth day in nine, extending this year’s gain to 9.3 percent. A U.S. State Department spokeswoman yesterday called Iran’s threats to shut the Straits of Hormuz “irrational behavior.” About one-sixth of global supply travels through the seaway. The country faces sanctions on its crude exports and a possible boycott by European oil buyers over its nuclear program. Prices gained yesterday after U.S. jobless claims fell to a three-year low. West Texas Intermediate crude for February delivery gained as much as 51 cents, or 0.5 percent, to $100.16 a barrel on the New York Mercantile Exchange. It was at $99.83 at 3:38 p.m. Singapore time, headed for a second weekly increase. Oil climbed 15 percent in 2010. Brent for February settlement was at $108.14 a barrel, up 13 cents on the London-based ICE Futures Europe Exchange, headed for a 14 percent increase this year. The European contract’s premium to

Gold Rebounds From Lowest Level in Six Months Heading for 11th Annual Gain

Gold, poised for an 11th year of advance, rebounded from the lowest level in six months as a slump that threatened to tip the metal into a bear market spurred purchases, tempering the effect of a stronger dollar. Immediate-delivery gold climbed as much as 0.9 percent to $1,560 an ounce and was at $1,555.30 by 1:01 p.m. in Singapore, up 9.5 percent in 2011. Holdings in exchange-traded (.GLDTONS) products, which reached a record 2,360.81 metric tons on Dec. 14, increased for a second day yesterday to 2,326.998 tons, according to data compiled by Bloomberg. February-delivery bullion rose as much as 1.3 percent to $1,561 an ounce, snapping a six-day losing streak which was the longest since March 2009. It last traded at $1,556.30 on the Comex in New York. Futures are 9.5 percent higher this year. Spot gold is on track of the longest bull run since at least 1920 as investors seek to hedge against weakening currencies, declining equities and rising inflation. Bullion reached a record $1,921.15 on Sept. 6, and would need to close below $1,536.92 to enter a bear market, typically defined as a drop of more than 20 percent from a recent high. In October 2008, gold tumbled 17 percent as the worst recession since the Great Depression sent global equity and commodity markets tumbling. The metal jumped 22 percent in the next two months. Still, bullion is 4.2 percent lower this quarter for its first quarterly drop since the three months to September 2008, after the fall of Lehman Brothers Holdings Inc.

Brent oil trading near $115, Libya tensions prop up prices

Brent oil prices open today’s trading session slightly lower, near $115 as tensions in Libya continue to prop up both Brent and WTI oil prices as doubts emerge over the resumption of Libyan crude oil exports. Latest Brent Oil Price In London, Brent crude oil futures for May 2011 delivery was trading at $114.63 a barrel, 04.30 GMT this morning on the ICE Futures Exchange. Brent oil closed off yesterday’s trading session up 0.4 percent at $115.20 a barrel

Brent crude oil hangs near $115 in thin trading volumes

Brent crude oil futures open Thursday’s trading session hanging near $115 a barrel while investors watch oil prices from the sidelines as trading volumes slip to their lowest levels of the year. Latest Brent Oil Price In London, Brent crude oil futures for May 2011 delivery was trading at $115.47 a barrel, 06.15 GMT on the ICE Futures Exchange. The contract closed yesterday’s session at $115.10.

Brent oil trading near $114 as Libyan oil exports resume

Brent oil prices open today’s trading session near $114 a barrel as news that Libya issued a shorter than anticipated timetable for the resumption of oil exports from the country. Latest Brent Oil Price In London, Brent crude oil futures for May 2011 delivery was trading at $114.56 a barrel, 06.15 GMT this morning on the ICE Futures Exchange, after slipping 0.8 percent lower in Monday’s trading session. Libya Oil Exports Could Resume in a Week Crude oil exports from Libya, which had fallen to virtually zero since the early stages of the conflict, could resume in less than a week, rebel representative Ali Tarhoni said, according to Agence France Presse

Brent oil futures close the week’s trading session at $116

Brent oil futures close off the week’s trading session back near $116 a barrel as crude oil supply concerns from Libya has traders and investors uncertain about short term oil price direction. Brent Oil Futures – Closing Price Brent crude oil futures for May 2011 delivery ended the week’s trading session at $115.95 a barrel on the ICE Futures Exchange yesterday evening, $1.44 higher than last week’s closing price of $114.51 a barrel. JP Morgan Forecasts Higher Brent Price JP Morgan analysts warned in a research note yesterday that higher oil supplies from OPEC will be needed to meet summer demand and sees the strong likelihood of a price spike of up to $130 a barrel for Brent crude oil