The morning report for the oil & gas industry 10/02/2015

Nothing beats a good storm. Good morning and welcome to this second day of October 2015! Yes its Friday, time to break into that celebratory weekend happy dance and get ready for some down time to recoup from the frantic activities of the past week.

Well as the weather men’s hope for hurricane Joaquin to make land fall here on the US mainland dwindle, so does the pricing for oil. Yesterday as predictions of if, when and where this hurricane might make landfall started to fade out to sea, so did the marketers opportunity to take advantage of the situation to try to create a rally to bolster up oil prices due to the carnage that could have been involved with this storm, but don’t worry, even though the storm is currently not predicted to make landfall, it will be creating havoc along the eastern seaboard, more specifically Northern Georgia, all of South Carolina and most of North Carolina as a storm system is already sitting over them raining like somebody forgot to shut off the tap. If this system and the hurricane merge look for even more rainfall to drop as forecasters are predicting 12” to 24” just over the weekend.

This morning the WTI will again start in the negative at $44.74, dropping another -$0.35 (-.078%) from yesterday’s starting price, the BRENT also starts in the negative at $47.69 taking a -$0.68 (-1.43%) loss, and natural gas will also begin the day behind the 8 ball at $2.43, taking another -$0.09 (-3.70%) loss. Todays 1 year forecasted price for oil still holds on at $51.00 per barrel. The WTI had 3 days of loses last week totaling $1.76 and 2 days of positives totaling $1.59 making your +/- for the week -$0.17 and finished the week with an average price of $45.04 dropping -$0.28 (-0.31%) to the previous weeks average, the Brent ended the week with 2 days of negative totaling $1.94, and 3 days of positives totaling $1.46 making the +/- for the week -$0.48 and finished the week with an average price of $48.05 taking a -$0.23 (-0.24%) cut from the previous weeks average, Natural Gas had 3 days of negatives last week totaling -$0.19 and 1 day of positive totaling $0.03 and 1 day where the pricing stayed even making the +/- for the week -$0.16 and finishing the week with an average price of $2.53 dropping -$0.05 (-1.02%) to the previous weeks average.

Gasoline prices are going to start ticking up as we approach the holiday and shut down season. Yesterday the National average for regular unleaded fuel went up +$0.005 at $2.294, fuel prices in the Dallas/Ft. Worth Metroplex area are also on the rise with a gallon of regular unleaded costing $2.1190 gaining +$0.03, mid-grade is at $2.3760 gaining +$0.02, premium $2.590 adding +$0.02 to its price and on-road diesel has an average price of $2.3770 adding +$0.004.

The bill to lift the export ban of oil here in the US is still making headlines as it heads to the Senate floor, but still seems to be nothing more than a feel good measure to make constituents happy, even so 1 democrat has stepped up in support of the bill although she has strings tied to her support (and who doesn’t in Washington) and that the Democratic senator from North Dakota Heidi Heitkamp (who would of seen that coming). Even to make it thru the Senate it would need all 54 of the Republicans and at least 5 additional Democrats to sign on and support the bill, but don’t look for it to happen because everybody wants something in trade if they sign on to it and by the time the final product makes it to the White House it will be so watered down that we would have been better off not even putting the bill forward. Heidi has already added her 2 cents to the bill, one of which would immediately stop the export of oil if National Security was at risk and the other would be to give additional tax credits to renewable energy production, stating “This is an opportunity to make an argument about production tax credits and investment tax credits in the context of giving certainty, across the board, to the energy industry and truly supporting an all-of the above-policy.” So don’t look for this to gain any legs but at least there is a glimmer of hope that it might actually happen one day when both the House and the Senate start working for the people like they are supposed to do instead of their own personal interest.

Have a fantastic, safe and productive Friday!

Currently as of 6:55 a.m.

WTI: $45.16, +$0.42 (+0.94%

BRENT: $47.84, +$0.15 (+0.31%)

Natural Gas: $2.42, -$0.02 (-0.74%)

DOW: -0.08%, -$12.69

S&P 500: +0.20%, +$3.79