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Oil and Natural Gas Futures Diverge Under Shadow of Government Shutdown

By  +Follow October 1, 2013 11:43AM
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While stocks bravely rallied in the face of the shutdown of the US government that began on Tuesday, oil and natural gas prices diverged.

West Texas Crude contracts for November delivery were down 1.10 percent to $101.20 per barrel, while the same contracts for Brent crude dipped 1.22 percent to $107.05 per barrel.

Meanwhile, natural gas contracts destined for a delivery date of November 13 were up nearly 2 percent to $3.63 per million BTUs on the New York Mercantile Exchange.

Crude prices have come down as a result of several factors. Against the backdrop of the 3-year old civil war in Syria that continues to rage, US Secretary of State John Kerry met with the Iranian Foreign Minister on the sidelines of the UN General Assembly meeting in New York City last week, in the highest-level diplomatic contact between the two countries since the revolution of 1979.

It was a stark and sudden contrast to US threats of military strikes against Syria, a close ally of Iran, that seemed a near certainty not three weeks ago. The apparent willingness of all parties to resort to dialogue rather than increased hostilities has eased concerns of supply disruption in the region.

The recent resumption of Libyan oil production, much of which had been brought to a standstill for extended periods by the country’s many unruly revolution-era militias, has also contributed to the downward pressure on crude prices.

The current impasse in Washington, D.C. over the continued functioning of the federal government, and the expected impasse over the debt ceiling over the coming weeks has also played its part in lower oil prices.

Natural gas, on the other hand, has been the beneficiary of recent bullishness around independent producers in the US. Last week, Goldman Sachs (GS) analysts returned from a visit to the Bakken Shale, and initiated coverage on Continental Resources (CLR) and Oasis Petroleum (OAS) . Both stocks jumped in reaction to the news, and were also up on Tuesday, 3.6 and 2.4 respectively.

Goldman Analysts were particularly enthusiastic about independent gas producers operating not only in the Bakken Shale, but also in the US’s many other shale prospects such as the Marcellus that lies underneath large swathes of the Northeastern portion of the country.

[Image Courtesy of Wikimedia Commons]

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for gs
P N D
23 Nov 14 07:24:33
So far this year, total M&A has already exceeded $3 trillion -> http://t.co/HQOJ7OEPtm $GS $MS
Langan Stocks
23 Nov 14 07:02:39
lookn4wins: GS 189.59 Stock Charts $GS Goldman Sachs Group http://t.co/jAQ8bUxaWv
abe-invest, St. Abe
23 Nov 14 06:22:04
RT @valuewalk: NY Fed Pres Holds Firm Amid Charges of Weak Oversight http://t.co/AV45cEABiZ $FED $GS $$
Meir Waizman
23 Nov 14 06:18:01
“@StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/6WKWubcviT $GS $MS” ~~> Wow!!
Cheryl Campbell
23 Nov 14 06:17:30
RT @StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
Investing Insight
23 Nov 14 06:09:15
StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/2V8el5Iwjb $GS $MS
Tony J Romano Martin
23 Nov 14 06:04:01
RT @StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
Eric Lint
23 Nov 14 06:03:26
RT @StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
Ruchi Mehrotra
23 Nov 14 06:02:27
RT @StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
Alpha Maven
23 Nov 14 06:01:26
RT @StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
Stef Illich-Edlinger
23 Nov 14 06:01:16
RT @StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
howardlindzon
23 Nov 14 05:59:50
RT @StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
KELLY CLELLAND 1
23 Nov 14 05:59:12
RT @StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
Wolf Of Essex
23 Nov 14 05:59:01
RT @StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
Nicholas Grambas
23 Nov 14 05:58:16
RT @StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
Marshall Moore
23 Nov 14 05:57:02
RT @StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
debra
23 Nov 14 05:55:55
RT @StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
Adriana Cristina
23 Nov 14 05:55:13
RT @StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
Ian Hosein
23 Nov 14 05:55:01
RT @StockTwits: So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
StockTwits
23 Nov 14 05:53:18
So far this year, total M&A has already exceeded $3 trillion -> http://t.co/vV03lNeWSx $GS $MS
The Legacy News
23 Nov 14 05:45:53
Goldman Sachs Assigned BBB+ Credit Rating $GS http://t.co/8RwVS4PYdZ
Polyticks
23 Nov 14 05:12:16
RT @jeffkearns: Dudley and Warren spar as Segarra watches hearing prompted by her secret Goldman-Fed tapes http://t.co/ER0YF4s9ZY $GS http:…
Lupita Finanzas
23 Nov 14 01:06:28
RT @StockTwits: Total M&A has exceeded $3 TRILLION this year. Here are the banks doing most of the deals -> http://t.co/vV03lNeWSx $GS $MS …
lookn4wins
22 Nov 14 22:43:51
GS 189.59 Stock Charts $GS Goldman Sachs Group Inc. (NYSE) Any opinions on GS? Please reply to this post. Last http://t.co/9qDA7BFlRG
Max Maxwell
22 Nov 14 22:38:46
RT @StockTwits: Total M&A has exceeded $3 TRILLION this year. Here are the banks doing most of the deals -> http://t.co/vV03lNeWSx $GS $MS …
Ackmanscam
22 Nov 14 20:55:01
RT @GoldmanSachs: David Kostin, $GS chief US equity strategist, talks about his 2015 #outlook on @CNBC: http://t.co/og9hKSpghs
Baarah Kuriyah
22 Nov 14 19:18:41
RT @RudyHavenstein: OP-ED: Is Goldman Sachs' reign of terror finally over? $GS http://t.co/8TFoTPczxR
Babak Morshedizadeh
22 Nov 14 19:18:11
RT @RudyHavenstein: OP-ED: Is Goldman Sachs' reign of terror finally over? $GS http://t.co/8TFoTPczxR
Random Pinko
22 Nov 14 19:17:52
RT @RudyHavenstein: OP-ED: Is Goldman Sachs' reign of terror finally over? $GS http://t.co/8TFoTPczxR
Gary Webb
22 Nov 14 19:14:14
RT @RudyHavenstein: OP-ED: Is Goldman Sachs' reign of terror finally over? $GS http://t.co/8TFoTPczxR
Terry Kinder
22 Nov 14 19:13:07
RT @RudyHavenstein: OP-ED: Is Goldman Sachs' reign of terror finally over? $GS http://t.co/8TFoTPczxR
PennyStock Zone
22 Nov 14 19:09:33
http://t.co/fnBiu3MA1X <-- Awesome trading DVD featuring 3 profitly gurus! #stocks #trading #nyse $FB $TWTR $VSR $MAC $VZ $GS
Ryan Francis
22 Nov 14 18:30:14
RT @GoldmanSachs: #TBT: Way back when - vintage $GS logos from the 50's & 60's. #GS145 http://t.co/fPG0KxG40S
Libros de Bolsa
22 Nov 14 17:54:43
RT @StockTwits: Total M&A has exceeded $3 TRILLION this year. Here are the banks doing most of the deals -> http://t.co/vV03lNeWSx $GS $MS …
Edward Dowd
22 Nov 14 16:18:12
@nanexllc There is an unholy relationship going on since 2009. I wonder what it is that makes $GS untouchable.
Trader Cracker
22 Nov 14 15:45:57
RT @StockTwits: Total M&A has exceeded $3 TRILLION this year. Here are the banks doing most of the deals -> http://t.co/vV03lNeWSx $GS $MS …
BolsaNews
22 Nov 14 15:31:03
RT @StockTwits: Total M&A has exceeded $3 TRILLION this year. Here are the banks doing most of the deals -> http://t.co/vV03lNeWSx $GS $MS …
FinSentS SP500
22 Nov 14 15:14:02
$GS:US Carter's (CRI) Scheduled to Post Quarterly Earnings on Thursday #GOLDMAN SACHS GROUP INC http://t.co/gRTVVUyAcX #SP500
Richard Hargrave
22 Nov 14 15:10:29
WEEKLY WRAP UP, $NYAD, $IWM, $GS, $GME, $GDX, $QQQ, $EWZ, $ETC $ETC. http://t.co/UH2rAMp4XD
Nick Madden
22 Nov 14 15:04:40
RT @KateKellyCNBC: 1st F-150 came off assembly line last week, and Senate panel argues that $GS made the metal in it pricier. More today ht…
Nick Madden
22 Nov 14 15:02:09
RT @KateKellyCNBC: Levin to $GS: It's the premium issue which is the issue here, as well as the affect of the queue. High correlation betwe…
ValueWalk
22 Nov 14 14:36:18
NY Fed Pres Holds Firm Amid Charges of Weak Oversight http://t.co/AV45cEABiZ $FED $GS $$
Eternity101
22 Nov 14 14:09:59
RT @Lizardjb3: @Eternity100000 will be back Monday Night.. Fuck $PCLN .. Already removed it from my spread sheet , gone ... Made it up in $…
James F Bowen III
22 Nov 14 14:06:49
@Eternity100000 will be back Monday Night.. Fuck $PCLN .. Already removed it from my spread sheet , gone ... Made it up in $GS, $JPM $MS .
PennyStock Zone
22 Nov 14 13:52:35
http://t.co/fnBiu3MA1X <-- Awesome trading DVD featuring 3 profitly gurus! #stocks #trading #nyse $FB $TWTR $VSR $MAC $VZ $GS
Eternity101
22 Nov 14 13:45:38
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Bidness Etc
22 Nov 14 13:45:07
The Federal Reserve is looking for ways it could improve its oversight of the institutions it regulates http://t.co/I3uU4qlUay $GS $JPM
ExileonBaySt
22 Nov 14 13:29:08
$GS picks the 32 best European stocks for 2015. http://t.co/Uh3RDUUj6a
KIMBERLIE Sadirah
22 Nov 14 12:17:17
Europe's biggest hedge fund, has sold its entire $850m (£517m) position in Goldman Sachs $GS
Stockaholics
22 Nov 14 11:50:08
578% Gains On Penny Stocks in one month! Plus a New Pick Is Coming: http://t.co/2W3yKD2d5Q $GS $ZION $ISRA
				
				
By  +Follow October 1, 2013 11:43AM
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