NYMEX-traded WTI crude oil futures contracts for November delivery fell by 5.10% on October 12. Crude oil prices fell due to mounting production from OPEC.
Record natural gas stockpiles and mild weather could push natural gas prices lower. On the other hand, the current bullish momentum could push natural gas prices higher.
Natural gas rig count fell by six to 189 for the week ended October 9, 2015. Rig count fell by two to 195 for the week ended October 2, the third straight week of falling rig counts.
The EIA released its weekly natural gas stockpile report on October 8. Natural gas stockpile rose 95 Bcf in the week ended October 2. Natural gas inventory rose 98 Bcf in the week ended September 25.
Natural gas prices marginally gained 0.16% and settled at $2.50 per MMBtu on Friday, October 9. Prices gained due to a less-than-expected increase in natural gas inventory data.
According to estimates by Baker Hughes (BHI), the total number of active rigs in the rest of the world currently exceeds the US rig count.
WTI crude oil futures for November expiry finally closed at $49.63 per barrel on October 9, a 0.4% rise from the previous day’s close at $49.43 per barrel.
In the week ended October 9, 2015, two US offshore rigs were added to the count compared to the previous week, taking the count to 32 rigs.
During the week ended October 9, 2015, the US onshore rig count fell by 16 from the previous week’s count.
The US horizontal rig count decreased by 11 in the week ended October 9, compared to the previous week’s count. This is the seventh consecutive weekly horizontal rig count drop.
Currently, there are 605 working oil rigs in the United States. The Permian Basin accounts for 230 of these rigs, more than any other region.
For the week ended October 9, among the key shales, the Permian Basin and Eagle Ford Shale lost ten and two crude oil rigs, respectively.
In the US, there were 189 natural gas rigs operating in the week ended October 9, six less than in the previous week. In the past 15 weeks, natural gas rigs decreased ten times.
Approximately 9% of US crude oil rigs have been idled in the past six weeks. The crude oil rig count now is the lowest since August 2010.
In the 12 months ended October 9, 2015, the total US crude oil and natural gas rig count fell by 1,135, or 59%. The number of active oil rigs fell by 1,004, or 62%.
There were 795 active oil and gas rigs in the United States in the week ended October 9, 2015. This is 14 less than the previous week, which ended October 2.
For the week ending October 9, the PRB spot coal prices averaged $11.15 per ton. This was $0.25 higher than the price for the week ending October 2.
US coal shipments rose to 17.7 million tons during the week ending October 2—compared to 17.5 million tons for the week ending September 25.
US electricity generation fell by 2.9% to 73.7 million mWh. In five of the nine census regions, electricity generation fell during the week ending October 2.
Electricity generation in the US fell to 73.7 million mWh for the week ending October 2—a 2.9% fall from the previous week’s 75.9 million mWh.