Oil prices fell despite Middle East turmoil –February 4

Crude oil price fell yesterday, along with other major energy commodities including natural gas spot price; Gold price also declined while silver prices rose yesterday.

Let’s quickly review the changes in major energy commodities market and precious metals for February 4th:

Oil and Gas prices:

Crude oil price (WTI spot), fell for the second straight day, yesterday it declined  by 1.67% as it settled on 89.03 $/b.

As a result, the spread between the WTI and Brent spot prices has shrunk a bit and it’s currently 10.6$/b (for more about figuring out the spread between WTI and Brent oil see here).

It seems that the effect of the ongoing Egyptian protests has subsided for now, as the price already incorporated the rise in the uncertainty in the Middle East  (for more on the Egyptian turmoil and its effect on crude oil price, see here).

Natural gas prices also decreased yesterday, probably related to the blizzards in many parts of the US, including the Northeast and Midwest that subsided. Nonetheless, the snow is expected to return tonight in parts of the Northeast and the South.

Natural gas spot price (Henry Hub) declined yesterday by 4.89%, as it reached 4.47$/mmbtu.

The backwardation (the spread between the future and spot prices) for Henry Hub is currently -0.16$/mmbtu. This could present an indication of the market expecting the price of natural gas to decline next month – upon the expiry of the March futures.

Precious Metals prices:

Gold price continues to zigzag, and after it moderately inclined on Thursday, it inclined yesterday by 0.3%, as it reached 1,349 $/t oz.

Silver prices inclined yesterday by 1.15% and reached 29.059$/t oz.

EURO/ USD declined yesterday by 0.39%, on the other hand, the USD weakened against the CAD, as the USD/CAD declined by 0.39%. For a more detailed report on the USD/CAD check out Forex crunch.

A summary of yesterday’s Prices Changes:

The following table presents the main descriptive data from last business day – February 4th, for precious metals, energy commodities and exchange rates. The table includes: settled prices, daily percent change, and quantitative change in US dollars (except for USD/CAD, in which the change is in Canadian dollars):

Natural gas spot price, Crude oil price, current Gold prices Silver prices February 4

For further reading (in this site):