Spot

The Canadian government earlier this month granted Chinese state-controlled industry a spot in the North American oil and gas industry with its approval of a merger by CNOOC Ltd. of Nexen Inc. (see NGI, Dec. 10), but it pledged that the toehold will not be allowed to grow into a dominant role.

With natural gas working inventories remaining near record highs through the end of November, the Energy Information Administration (EIA) expects the Henry Hub spot price to average $2.78/MMBtu this year, down from $4.00/MMBtu in 2011, before rebounding to an average of $3.68/MMBtu in 2013.

With natural gas working inventories remaining near record highs through the end of November, the Energy Information Administration (EIA) expects the Henry Hub spot price to average $2.78/MMBtu this year, down from $4.00/MMBtu in 2011, before rebounding to an average of $3.68/MMBtu in 2013.

The Canadian government Friday granted Chinese state-controlled industry a spot in the North American oil and gas industry (see Daily GPI, Dec. 10), but it pledged that the toehold will not be allowed to grow into a dominant role.

Lower-than-expected natural gas inventories have led Moody’s Investors Service to lift its assumptions for North American Henry Hub natural gas spot prices by 50 cents to $3.50/MMBtu in 2013 and $4.00/MMBtu in 2014 and thereafter.

Lower-than-expected natural gas inventories led Moody’s Investors Service to lift its assumptions for North American Henry Hub natural gas spot prices by 50 cents to $3.50/MMBtu in 2013 and $4.00/MMBtu in 2014 and thereafter. Prices sagged in recent years on the unconventional drilling boom and mild weather, which has led to an oversupply, but prices have climbed in 2012 on coal-to-gas switching in the power generation sector and hot weather, and as companies have scaled back their dry gas drilling, Moody’s said. Assumptions for natural gas liquids prices remain unchanged at $34/bbl in 2013, 2014 and thereafter, pegging prices at 40% of West Texas Intermediate prices.

With working natural gas inventories at a record high, the Henry Hub spot price is expected to average $2.77/MMBtu this year — a 31% decrease from $4.00/MMBtu in 2011 — but it is expected to rebound to an average of $3.49/MMBtu in 2013, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook released last week.

With working natural gas inventories at a record high, the Henry Hub spot price is expected to average $2.77/MMBtu this year — a 31% decrease from $4.00/MMBtu in 2011 — but it is expected to rebound to an average of $3.49/MMBtu in 2013, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook released Tuesday.

Overall cash points fell on average by 10 cents Tuesday as the physical market played catch-up to Monday’s 16-cent drubbing of the spot futures. Eastern and Midwest points were particularly hard hit as mild temperatures also worked to limit loads. At the close of futures trading November had gained 8.3 cents to $3.535 and December had added 9.3 cents to $3.861. December crude oil continued its free-fall by losing $1.98 to $86.67/bbl.