Spot crude oil, natural gas prices

Oil steady, gas down

Wendy Natt, Aug 12, 09.

A Houston Economic Indicators email update from Skip Kasdorf at the Greater Houston Partnership (GHP) reports on the latest figures, half-year trends, and forecasts for spot crude oil and natural gas prices:

CRUDE OIL
The Friday closing price of West Texas Intermediate - the U.S. benchmark light, sweet crude - averaged $65.28 per barrel in July, less than half the price a year earlier, according to the latest data from the Energy Information Administration (EIA). Prices peaked above $147 last July before beginning a swift descent that bottomed below $35 last December. Prices have improved since then, averaging $43.54 in Q1/09 and $59.99 in Q2/09. Most economists feel that fundamentals don’t yet justify prices in the $60s or higher, and see the Q2 gains primarily as optimism - based on growing glimmers of good economic news - that demand is on the verge of rising.

NATURAL GAS
Unlike oil prices, natural gas prices remain low. EIA reports that the Friday close for Henry Hub natural gas in July averaged $3.34 per million British thermal units, down more than 70 percent from July ’08. The weak July performance pulled the average for the first seven months of this year below $4. With gas in storage nearing capacity and supply plentiful, it’s difficult to see much support for higher gas prices until a U.S. economic recovery boosts industrial demand.

Crude oil closed at a slightly lower price in July than in the month of June, when it averaged $69.83 per barrel, according to an earlier GHP report.

See the full list of Houston Economic Indicators for August 12, 2009 from the Greater Houston Partnership.