Closing the week of an unstable Energy market – news update for December 10th

Recent News

I examine in this sport report the recent EIA report about Natural gas stocks; the main changes in Crude oil news; and update about the prices of major commodities including Gold, Silver, Natural gas and Crude oil.

The IEA (the International Energy Agency) raised its projections for the global demand for crude oil in 2011, this time it projects the worldwide demand will be 88.8 million barrels per day, which is based on “stronger data from OECD North America and non-OECD Asia”. On the other hand, so does the supply in 2011 expectations rose to 53.4 million barrels per day – a 0.6 mb/d.

According to the EIA, OPEC’s crude oil production during November was higher then previous month, by 45 kb/d to reach 29.2 mb/d.

OPEC, responsible for about 40 percent of world crude supply, is planned to meet on December 11th in Quito, Ecuador.

In regards to Crude oil prices continue to fluctuate with no apparent trend; as for now, they show a small fall of less than half a percent.

After the high rise in Natural gas prices a couple of days ago, the fall also came with the New York City Gate Spot dropping by nearly 24%, settling on 6.6 ($/MMBTU). Despite this unexplained fluctuation which has to be related to a speculative maneuver, the rest of the Natural gas prices didn’t change as much as you can see below.

Stocks – Natural gas:

After I have reviewed yesterday the EIA report on the US oil stocks I will shortly review the main news items in regards to the EIA report about Natural gas stocks.

According to the EIA report and its published data for the week until 8th of December, the reason for the rise in Natural gas prices is the cold weather; notice that this month’s rise is more then the average of previous years, which could be partly because of the late arrival of the winter with cold weather, and the lower temperatures in the US then previous year; however,  it could also be because of speculation that drive prices higher as investors look where to put their investments with Europe and US economies high risk. The Northeast and Florida saw the most substantial price increases in Natural gas.

The Natural Gas Working Underground Storage (Billion Cubic Feet) showed last week a decrease of 2.3% from the previous week and reached 3,725 (Billion Cubic Feet) for all lower 48 states.

In total the consumption of Natural gas rose by more then 24% from last week, with a high 102.7 Bcf per day on Tuesday, according to estimates by BENTEK Energy Services, LLC.


Here is an update on the prices of main energy and precious metals commodities for December 10th:


The crude oil price of short term futures (Nymex) – delivery for January 2011, as of 16.09PM GMT, on the New York Mercantile Exchange, is currently traded at 87.89 USD per barrel, which represents a 0.48 USD/b decrease or a 0.54 % fall.

The Dated Brent spot crude oil is at 90.20 USD per barrel – a 0.34 USD per barrel decrease as of 16.19PM GMT.

The WTI spot price is trading as of 14.08PM GMT at 88.27 USD per barrel, a small drop of 0.11% compare to the previous business day’s rate.

Natural Gas future price (the Nymex Henry Hub Future) is currently traded as of 16.09 PM GMT, at 4.4 $ MMBTU (one million BTU), a 0.83% decrease.

Precious Metals

Investors seem to flip flop on Gold prices as their prices show one day rise and another day fall. In particular, gold short term January delivery future (Gold 100 oz.) is currently traded at 1,380 USD /t. oz., a moderate 0.9% decrease or 12.5 USD /t. oz. at 16.09 PM GMT.

Silver prices, much like Gold prices, are decreasing, and as of 16.10 PM GMT are traded at 28.345 $/t oz. a 1.64% decrease or 0.472 $/t oz.

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