8/3/2019 Energy and Markets Newsletter January 10-2012

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January 10,2012

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Energy Data Highlights

Retail gasoline price1/9/2012: $3.382/galup$0.083 from week earlierup$0.293 from year earlier

Retail diesel price1/9/2012: $3.828/galdown$0.045 from week earlierup$0.495 from year earlier

Crude oil futures price1/6/2012: $101.56/bblup$2.73 from week earlierup$13.18 from year earlier

Natural gas futures price1/6/2012: $3.062/mmBtu

up$0.073 from week earlierdown$1.372 from year earlier

Weekly coal production12/31/2011: 19.194 million tonsdown1.097 million tons from week earlierup0.167 million tons from year earlier

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Crude, Gold, Copper, Aluminum Advance: Commodities at CloseCRUDE OIL -- Futures rose in New York for the first time in four days asVenezuela said OPEC shouldn’t intervene to offset sanctions against Iran,and European leaders were scheduled to discuss strategies for resolvingtheir debt crisis. Brent oil for February settlement on the London-basedICE Futures Europe exchange climbed as much as 81 cents, or 0.7

percent, to $113.26 a barrel. The European benchmark contract was at a$10.92 premiumNATURAL GAS -- Futures were little changed in New York. Gas forFebruary delivery rose 0.1 percent to $3.013 per million British thermalunits on the New York Mercantile Exchange. Prices are 31 percent lowerthan a year agoOIL PRODUCTS -- Gasoil’s premium to Dubai crude rose 18 cents, or 1percent, to $18.93 a barrel, PVM data showed. This crack spread is at thewidest since Dec. 7.PRECIOUS METALS -- Spot gold gained as much as 0.7 percent to$1,623.28 an ounce before trading at $1,617.45 an ounce at 3:57 p.m.Singapore time. It fell 0.4 percent yesterday and dropped 0.3 percent on

 Jan. 6. February-delivery bullion advanced 0.6 percent to $1,617.90 anounce on the Comex in New York.GRAINS, SOFT COMMODITIES -- March-delivery corn advanced as much as0.6 percent to $6.56 a bushel on the Chicago Board of Trade, extendingyesterday’s 1.3 percent rise. It traded at $6.54 a bushel at 3:14 p.m.Singapore time. Wheat for March delivery was little changed at $6.4125a bushel, after a 2.7 percent gain yesterday. Soybeans for delivery in thesame month were also little changed at $12.32 a bushel, after a 3.1percent rise yesterdayhttp://www.businessweek.com/news/2012-01-10/crude-gold-copper-aluminum-advance-commodities-at-close.html

Nat Gas: Ready for $1/MMBtu?

BofA Merrill Lynch Global Commodity Research has sharply lowered their US

natural gas price forecasts. While the strength in shale gas output has upset the

supply demand balance in the US natural gas market for some time now,

abnormally low heating demand this winter has further contributed to exacerbate

the surplus - with November and December seeing the warmest winter weather in

over 30 years

http://www.commodities-now.com/commodities-now-news/power-and-

energy/9561-nat-gas-ready-for-1mmbtu.html

Fracking Moratorium Urged by U.S. Doctors Until Health Studies

Conducted 

 The U.S. should declare a moratorium on hydraulic fracturing for natural gas in

populated areas until the health effects are better understood, doctors said at a

conference on the drilling process

http://www.bloomberg.com/news/2012-01-09/fracking-moratorium-urged-by-u-s-

doctors-until-health-studies-conducted.html

Green/ Alternative Energy News

Florida bills seek renewable-energy overhaul  

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Florida's energy future is expected to be controversial once again this year as the

legislature begins its session Tuesday.

Some bills propose allowing property owners who produce electricity from

renewable sources to sell it directly to tenants, bypassing the utility company.

http://www.palmbeachpost.com/money/real-estate/florida-bills-seek-renewable-

energy-overhaul-2089828.html

Renewable energy outpaces fossil fuel and nuclear growthRenewable energy sources continue to expand rapidly while substantiallyoutpacing the growth rates of fossil fuels and nuclear power, accordingto the Monthly Energy Review by the US Energy InformationAdministration (EIA).http://www.renewableenergyfocus.com/view/23051/renewable-energy-outpaces-fossil-fuel-and-nuclear-growth/

Crude Oil News

OPEC Daily Basket Price 1/9/2012 – 112.51

(OPEC Daily Basket Price 1/6/2012 – 112.23)

Oil rises to $113 on Iran tension

Oil rose to around $113 a barrel on Tuesday as tension over Iran's nuclear

program and unrest in Nigeria outweighed persistent concerns about the strength

of Europe's economy.

http://www.reuters.com/article/2012/01/10/us-markets-oil-

idUSTRE7AD06820120110

Oil Advances for First Day in Four on Iranian Dispute, Euro Debt Meeting

Oil rose in New York for the first time in four days on growing concern that the

dispute between Iran and western governments may lead to a disruption in Middle

East crude exports.

http://www.bloomberg.com/news/2012-01-10/oil-advances-for-first-day-in-four-on-

iranian-dispute-euro-debt-meeting.html

OPEC Can’t Be Involved in Iran Sanctions Dispute, Venezuela’s Ramirez

Says

 The Organization of Petroleum Exporting Countries can’t get involved in the

dispute over Western sanctions against Iran, Venezuela’s oil minister RafaelRamirez said.

http://www.bloomberg.com/news/2012-01-10/opec-can-t-be-involved-in-iran-

sanctions-dispute-venezuela-s-ramirez-says.html

Iran Tension Will Keep Oil Prices High

 The tensions over Iran and threats from the West to apply sanctions on Iranian oil

will see crude prices facing more of an upside risk in the near future, a

commodities analyst told CNBC

http://www.cnbc.com/id/45939219

Oil Prices Could Soar 80% If Iran Shut Hormuz: Analyst 

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If Iran were to shut down the Strait of Hormuz, a key oil transportation route

where millions of barrels travel out of the Persian Gulf every day, Brent crude

would surge to between $150 and $200 a barrel, according to an oil analyst with

Societe Generale. “We believe it would be relatively easy for Iran to shut down the

Straits of Hormuz,” wrote Michael Wittner, in a report late Friday to clients. “A

credible threat from missiles, mines, or fast attack boats is all it would take fortanker insurers to stop coverage, which would halt tanker traffic. However, we

believe that Iran would not be able to keep the Straits shut for longer than two

weeks, due to a US-led military response.”

http://www.cnbc.com/id/45929942

Toyota's Lentz Sees Gasoline Above $4 in 2012

 Toyota USA President Jim Lentz forecasts retail gasoline prices surpassing $4 a

gallon in 2012. "I think so," Lentz says. "The chances of it going substantially

higher than that are pretty great."

http://www.cnbc.com/id/45928927

How Microbes Teamed to Clean Gulf  A fortuitous combination of ravenous bacteria, ocean currents and localtopography helped to rapidly purge the Gulf of Mexico of much of the oil and gasreleased in the Deepwater Horizon disaster of 2010, researchers reported onMonday. After spewing oil and gas for nearly three months, the BP PLC well wasfinally capped in mid-July 2010. Some 200,000 tons of methane gas and about 4.4million barrels of petroleum spilled into the ocean. Given the enormity of the spill,many scientists predicted that a significant amount of the resulting chemicalpollutants would likely persist in the region's waterways for years.http://online.wsj.com/article/SB10001424052970203436904577150910025591788.html

BOEM to hold public hearing in Houston The Bureau of Ocean Energy Management will hold a public hearing Tuesday inHouston to give the public the opportunity to comment on a proposedenvironmental-impact statement for the outer continental shelf oil and gas leasesale.http://fuelfix.com/blog/2012/01/09/boem-to-hold-public-hearing-in-houston/

Keppel agrees to $150 million U.S. rig dealKeppel AmFELS inked a deal today with Houston-based DiamondOffshore for $150 million to construct and upgrade a mooredsemisubmersible rig.http://fuelfix.com/blog/2012/01/09/keppel-agrees-to-150-million-u-s-rig-deal/

Recent Rig Counts

Area

Last

Count

Cou

nt

Change from

Prior Count

Date of 

Prior

Count

Change

from Last

 Year

Date of 

Last

 Year's

Count

U.S. 6 Jan 12 2007 Unchanged 29 Dec

11

+307 7 Jan 11

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Canada 6 Jan 12 361 140 29 Dec11

-61 7 Jan 11

International

December 2011

1180 -5 November 2011

+62 December2010

http://investor.shareholder.com/bhi/rig_counts/rc_index.cfm

Natural Gas/ Power News

EIA Storage Release 1/5/12 (Actual): -76Previous Week: -81 Bcf +11.4 % Change from 1 Year Ago+15.2% Change 5-year Average

Natural gas tumbles as U.S. east coast to remain warm this week Natural gas prices were down sharply on Monday, trading close to a 28-

month low as sentiment on the heating fuel was dampened afterforecasts called for warmer-than-normal weather across the U.S. eastcoast in the coming week.http://www.moneycontrol.com/news/commodities/natural-gas-tumbles-as-us-east-coast-to-remain-warm-this-week_647836.html 

Weather

6 to 10 Day Outlooks

Temperature

 

Precipitation 

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8 to 14 Day Outlooks

Temperature 

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Precipitation