Crude oil and natural gas prices update for 11th of November

Energy Prices

Crude oil price of (futures for December 2010), as of 10.47AM GMT, on the New York Mercantile Exchange (Nymex), is at 88.35 USD per barrel, which represents a 0.54 dollar increase or a 0.61% incline.

The WTI spot price settled yesterday at the closing of the trade at 87.81 USD per barrel, a decrease of 1.42% compare to the previous day’s rate as of yesterday, November 10th.

The ICE Brent crude oil price (futures for December 2010) reached 88.96 USD per barrel – a 0.547 percent increase as of 10.30AM GMT.

Natural gas prices also rallied a bit after it dropped yesterday and is now being traded, as of 10.45PM GMT, the Nymex Henry Hub Future price for December 2010 is at 4.11$ MMBTU(one million BTU) which is a 1.63% increase or 0.07$.

Main News

  • There is a continuous bullish bet on the crude oil price so that it will progress further in 2011 and 2012. This projection was made yesterday, November 10th, by Goldman Sachs and delivered on Bloomberg News. According to Goldman Sachs the crude oil prices will be “substantially higher” then they are today.
  • The natural gas market is heating up in Israel around the level of taxes the drilling companies will have to pay for the Natural Gas they have found off the shores of Israel. This issue deserves a whole post of its own, and I will refer to this subject in the near future. In any case, the Israeli House of Representatives appointed a committee, headed by Prof. Eytan Sheshinski, in charge of providing guidelines on how and if to tax these companies for the natural gas they have found. The main suggestions, which were approved yesterday, 10th of November, by all committee members, include, among other, issuing a progressive levy on these companies that will kick in only after the companies will retrieve 150% of their investment. The levy will start off at 20% and will progress to 60% of these companies profits.
  • The weekly report made by the EIA was published yesterday, and predict that the US household will have to pay nearly 8% more on its propane for heating, mainly due to the increase in the crude oil price, I will elaborate on the main findings of the report in the weekly review.


There is also an interesting post made at about the perplexity of how much oil there is, or we think there is…