Baker Hughes Inc. on Friday reported a 30% drop in first quarter profits, stung by weak North American drilling, but there is more optimism about the U.S. onshore rig count through the rest of the year, management said Friday. Schlumberger Ltd. also reported a drop in quarterly profits on declines in North America, and executives said the outlook this year for the United States and Canada remains uncertain.
Weakened
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Oil and Gas Workers Begin Return to GOM as Isaac Slowly Fades
Weather conditions along the Gulf Coast were gradually improving Thursday as Isaac, which had reached the Louisiana coast as a Category 1 hurricane, weakened and moved into northern Louisiana, but oil and natural gas operators were being cautious about returning to evacuated facilities in the Gulf of Mexico (GOM).
Snow, Cold Prop Up Northeast Cash, Futures
Cash prices weakened across most points Friday as traders attempted to navigate the tricky three-day trading window with lower weekend demand followed by a higher demand start to the week.
Soft Bidweek Seen, But February Futures Expire on a Firm Note
Overall cash prices weakened Friday with the largest declines seen on the West Coast. Gulf Coast quotes were off about a dime, but prices into the Northeast moved higher as they followed surging electric power prices. Futures prices managed a gain as traders elected to cover shorts ahead of the weekend. At the close of futures trading February had added 7.3 cents to $2.678, which is 33.5 cents higher than the contract’s finish the previous week.
Bearish Drilling, Storage Data; November Drops
November natural gas weakened again Friday as traders digested reports of additional drilling for natural gas and a production dynamic that continues to point to greater output. At the close November had fallen 8.1 cents to $3.666 and December had given up 5.3 cents to $3.962. November crude oil retreated $2.94 to $79.20/bbl.
Large Majority of Points Slide on Milder Weather
Although several points clung to flat showings, prices weakened further Thursday as a large number of locations fell, compared to a day earlier when about half the market saw a mild degree of firmness.
Futures Continue Dredging for a Bottom as Hurricane Richard Dissipates
November natural gas futures continued to probe lower price levels on Monday after Hurricane Richard weakened to a tropical depression and was expected to peter out over the Yucatan, sparing Gulf of Mexico energy interests and the Gulf Coast. The front-month contract reached a new low for the move of $3.255 before closing out the regular session at $3.317, down 1.5 cents from Friday’s finish.
Mild Weather, Screen Push Most Points Lower
Prices fell at nearly all points Wednesday, weakened by moderate weather forecasts in many areas and by the previous day’s 7.8-cent November futures drop. The roller-coaster ride continued in the Rockies market, which followed up Tuesday’s triple-digit spikes with Wednesday’s largest declines, although only Kern River and Northwest-domestic plunged by more than a dollar.
Most Points See Lower Post-Holiday Prices
Most of the cash market weakened as many traders (but not all) returned Thursday from the midweek holiday. Cooling load was still not up to early-July standards outside the western U.S. While the penny drop by August futures Tuesday had negligible negative guidance for Thursday’s cash trading, a further 13.6-cent screen drop Thursday likely will have more impact on weekend deals struck Friday.
CSU Hurricane Forecast Team Reduces 2006 Atlantic Expectations
As one time Tropical Storm Chris weakened to a tropical depression on Friday, the 2006 Atlantic hurricane season was dealt an additional blow the day before as respected hurricane forecasters William Gray and Philip Klotzbach of the Colorado State University (CSU) hurricane forecast team issued a report reducing the number of storms expected in the basin this season.