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Petroleum industry

Winter Weather Brings Relief to Oil and Gas Markets

Strategic Insights

— 1 min read

Harsh winter weather finally grabbed the attention of traders on the New York Mercantile Exchange (Nymex), prompting a halt in trading more than an hour early. The snowstorm outside their windows sent prices for natural gas and other energy commodities surging. Natural gas futures for March delivery rose 6.4 cents to $2.411 per million British thermal units (MMBtu), while spot natural gas prices jumped 20 cents per MMBtu to as high as $2.70 per MMBtu. March No. 2 heating oil futures also rose, increasing by 0.59 cents per gallon to 50.57 cents per gallon.

Key Takeaways:

  • Natural gas futures for March delivery rose by 6.4 cents to $2.411 per MMBtu, driven by a 20-cent jump in spot natural gas prices to as high as $2.70 per MMBtu.
  • March No. 2 heating oil futures increased by 0.59 cents per gallon to 50.57 cents per gallon, while spot prompt No. 2 at New York Harbor rose 1.5 cents per gallon to 59.55 cents per gallon.
  • February gas oil (No. 2) futures on London's International Petroleum Exchange climbed 75 cents per metric ton to $144.50.
  • March West Texas Intermediate crude oil futures slipped 4 cents to $15.21 per barrel, despite rumors of Russia joining production cutbacks and comments from OPEC on potential production cuts.
  • Wholesale prices declined across the board, with oil companies cutting low-sulfur diesel 0.92 cents per gallon to 56.75 cents, No. 2 prices 0.80 cents per gallon to 56.13 cents, and unleaded regular gasoline 0.31 cents per gallon to 51.06 cents.

Statistics:

  • Natural gas futures for March delivery increased by 6.4 cents to $2.411 per MMBtu.
  • Spot natural gas prices jumped 20 cents per MMBtu to as high as $2.70 per MMBtu.
  • March No. 2 heating oil futures rose by 0.59 cents per gallon to 50.57 cents per gallon.
  • February gas oil (No. 2) futures on London's International Petroleum Exchange climbed 75 cents per metric ton to $144.50.
  • March West Texas Intermediate crude oil futures slipped 4 cents to $15.21 per barrel.
  • Wholesale prices declined by 0.92 cents per gallon (low-sulfur diesel), 0.80 cents per gallon (No. 2), and 0.31 cents per gallon (unleaded regular gasoline).

Sources:

  • The Oil Daily
  • Computer Petroleum Corp.
  • New York Mercantile Exchange (Nymex)
  • International Petroleum Exchange (London)
  • American Petroleum Institute

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