National Oilwell Varco Inc. (NOV), the largest oilfield equipment supplier in North America, beat profit forecasts in 3Q2012 on solid demand in the deepwater and overseas, but the U.S. land drilling market has stalled, executives said Thursday.
Articles from Forecasts
Cash market quotes overall averaged nearly 13 cents higher Wednesday aided by a strong screen from the day before and weather forecasts calling for the first major incursion of cold air of the season. Midwest points and those locations expected to feel the brunt of the late-week cold experienced gains upward of 20 cents, but Gulf and California advances were more modest. At the close of futures trading November had skidded 8.5 cents to $3.450 and December had slipped 8.5 cents also to $3.776. December crude oil continued lower losing 94 cents to $85.73/bbl.
The physical market overall on average fell about 2 cents Wednesday in spite of short-term weather forecasts calling for warm temperatures and much of the Gulf of Mexico production shut-in. Midwest and eastern points were weak but California locations managed modest gains. At the close of futures trading the expired September contract had managed a 2.0 cent gain, reversing a string of four losses to $2.634 and October had gained 5.2 cents to $2.685. October crude oil fell 84 cents to $95.49/bbl.
The cash market overall rose an average 21 cents Monday boosted by a combination of pipeline outages, forecasts for searing heat, and Gulf shut-ins prompted by tropical storm activity. Northeast points shot higher as milder weather enabled pipelines to reinstate earlier restrictions. At the close of futures trading July natural gas gained 6.9 cents to $2.694 and August added 6.6 cents to $2.734. August crude oil shed 55 cents to $79.21/bbl.
Overall cash prices added a dime Monday as weather forecasts, pipeline maintenance and a strong screen combined forces to send prices sharply higher. Northeast points led the charge higher, but Southern California locations were not far behind. At the close of futures trading July had jumped 16.8 cents to $2.635 and August had risen 15.4 cents to $2.565. July crude oil fell 76 cents to $83.27/bbl.
A flurry of long range forecasts last week all reached the same conclusion: the 2012 hurricane season is expected to produce fewer tropical storms than the last few years.
Amid forecasts that see no end to low gas prices across North America, overseas exports of liquefied natural gas (LNG) are being rated as a must for development of the Canadian version of shale supplies in northern British Columbia (BC).
The physical market slipped another 2 cents on average Thursday with Northeast points taking the larger hits. In Southern California forecasts of summer-like weather on top of planned maintenance were enough to skew traditional price differentials, and price declines were minimized.
Not even forecasts of next-day weather staying relatively moderate, combined with Monday’s drop of 5.1 cents by February futures, were able to knock continued general firmness out of the cash market Tuesday. Somehow the widely acknowledged fact of abundant storage remaining available is having little impact on continued purchases of spot gas.