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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
Ronnie Matrix.
3 Mar 15 06:50:05
Conference in Midtown #JPMorgan #BarclaysCapital $GS. It's going to be a long day. #Biz
teevee
3 Mar 15 06:47:38
"@BeckyHiu: Bright spot today is: big banks. $JPM $GS $BAC $C all green"
Becky Hiu
3 Mar 15 06:45:55
Bright spot today is: big banks. $JPM $GS $BAC $C all green
Langan Stocks
3 Mar 15 06:38:39
$HEDJ Investor Opinions Updated Tuesday, March 3, 2015 09:03:24 AM $IMSC $CXDC $GS $GLD http://t.co/n6nucH0BzU
MarketMaykur
3 Mar 15 06:37:58
$GS march 195 stike 17 dte 1.76
Venky Srinivasan
3 Mar 15 06:37:03
Commented on StockTwits: $BK that I have is as well. Possibly $GS as well and some banks. http://t.co/sECNK244sV
PolgarStocks
3 Mar 15 06:36:41
$DDD Company Info Updated Tuesday, March 3, 2015 09:07:23 AM $RSP $QLD $CMG $GS http://t.co/6aNRQKgOIc
PolgarStocks
3 Mar 15 06:36:39
$SLW Reviews Updated Tuesday, March 3, 2015 09:07:23 AM $FITX $EA $GS $UUP http://t.co/3015aBJbgA
PolgarStocks
3 Mar 15 06:36:38
$GS Stock Forum Updated Tuesday, March 3, 2015 09:07:23 AM $NFLX $QLD $T $IWM http://t.co/vxcco76KCL
Nicholas
3 Mar 15 06:36:26
RT @BlueFielder: $GS : Strong in this soup
Cameron
3 Mar 15 06:35:34
$GS : Strong in this soup
selling_theta
3 Mar 15 06:33:14
$GS right away pushed $1 higher from opening print.
Matthew Rater
3 Mar 15 06:23:37
RT @takingstock614: + 2200-2300 imho. There are many individual names I like here moving forward for big upside $GOOGL $AAPL $ICPT $PCLN $…
LouisLouie
3 Mar 15 06:19:41
RT @takingstock614: + 2200-2300 imho. There are many individual names I like here moving forward for big upside $GOOGL $AAPL $ICPT $PCLN $…
TakingStock614
3 Mar 15 06:19:31
+ 2200-2300 imho. There are many individual names I like here moving forward for big upside $GOOGL $AAPL $ICPT $PCLN $TWTR $GS $V $AVGO +
My Financial Wisdom
3 Mar 15 06:19:19
Dividend Investing http://t.co/8TGkCC0rZm #DividendInvesting $AXP $GS $MCO $WMT $USB $WFC $PG $IBM $KO $XOM #BuyLowSellHigh #BigBusiness
Diogenes
3 Mar 15 06:18:10
@TheStalwart @endacurran Only a (former) $GS partner would somehow think he was alone in thinking this.
Gr8wklyoptions
3 Mar 15 06:12:14
$AAPL $AMZN $BABA $BIDU $CELG $CVX $FB $FSLR $GILD $GLD $GMCR $GOOG $GOOGL $GPRO $GS $IWM $LNKD $NFLX $PCLN $QQQ $SBUX
Market Int Center
3 Mar 15 06:03:30
Goldman Sachs $GS Trading Near $193.30 Resistance Level ( http://t.co/8rJ8Ee4UZs )
Breaking News Now
3 Mar 15 06:02:02
$JPM $WFC $USB $GS: At JPMorgan Chase, Business Tilts Toward the Consumer Side and ...: http://t.co/rTZNCU5PUp
Jeff
3 Mar 15 05:50:08
$mnkd $gs downgrades on launch after 1 month of sales is able to predict sales out 10 yrs with 1 month of sales
Capital Market Labs
3 Mar 15 05:27:02
$GS Earnings and Valuation Trends #CML http://t.co/ZfVeTDN2sg
Stock Market Basics
3 Mar 15 05:22:40
RT @10Xtrading: Stock Market Daily Review using Technical Analysis Video http://t.co/cof4SCWjRa $IWM $V $COST $BA $GS $AAPL $TSLA
10X Trading
3 Mar 15 05:02:49
Stock Market Daily Review using Technical Analysis Video http://t.co/cof4SCWjRa $IWM $V $COST $BA $GS $AAPL $TSLA
Ryan Smith
3 Mar 15 04:56:49
RT @GoldmanSachs: #PODCAST: $GS' Jeff Currie discusses the "New #Oil Order" & the future of #energy: https://t.co/P0IDFjlHNY #OilPrices
Breaking News
3 Mar 15 04:56:04
$GS: Goldman Sachs EVP Sells $12452675.30 in Stock (GS): http://t.co/Q6UfvL3Ynn
Rosner Stocks
3 Mar 15 04:39:12
$YUM Last Price Updated Tuesday, March 3, 2015 06:59:23 AM $BIOC $BAC $GS $VXX http://t.co/Lwz5YJMz3c
Peter Gardett
3 Mar 15 04:35:16
RT @GoldmanSachs: #PODCAST: $GS' Jeff Currie discusses the "New #Oil Order" & the future of #energy: https://t.co/P0IDFjlHNY #OilPrices
NASDAQ
3 Mar 15 04:34:04
$GS - Goldman Sachs Cuts A Third Of Investment Banking Staff In Singapore - Source http://t.co/vLzrjw6oMa
ProVesting
3 Mar 15 04:22:02
$C $LEAF $FIG $BAC $GS: Citigroup to Sell OneMain to Springleaf for $4.25 Billion: http://t.co/EFrwv8sScx
ProVesting
3 Mar 15 04:17:02
$BAC $GS: Citi to sell OneMain Financial to Springleaf for $4.25 billion: http://t.co/dEf0GWWlHA
Paul
3 Mar 15 04:10:57
$GS raises $NXPI to a neutral at $100 from a Sell ( short ) $65 target ( in other words they're buyers NOW ) hehe
SmallCap News Feed
3 Mar 15 03:58:58
Goldman Sachs $GS понизили рейтинг акций MannKind $MNKD до "продавать".
PolgarStocks
3 Mar 15 03:32:53
$MRK News Updated Tuesday, March 3, 2015 06:07:24 AM $ATHX $BAC $GS $CXDC http://t.co/L3aP98nPZg
PolgarStocks
3 Mar 15 03:32:51
$FB Stock Message Board Updated Tuesday, March 3, 2015 06:07:24 AM $FCX $GS $RSX $ARNA http://t.co/RTy4Dsj46E
NASDAQ
3 Mar 15 03:13:06
$GS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/Btgst9s5Qz
Carolyn B Miciano
3 Mar 15 03:12:19
The Mayan Calendar spread of Calendar spreads http://t.co/fa1OBBdEgh $GS $COST $FDX
Exorcise Adnan
3 Mar 15 03:12:14
not really. I've got a whole shit ton of interns. I was watching all day. $JPM, $GS earnings are just accounting magic.
Breaking News
3 Mar 15 03:11:03
$GS: Insider Transaction Update: Goldman Sachs Group, Inc. EVP Sells ...: http://t.co/Hgszc6CwBM
Carolyn B Miciano
3 Mar 15 03:07:29
Beginners guide to Put Options http://t.co/8QtP1D9T9R $GS $COST $FDX
Howard Eisen
3 Mar 15 02:49:33
Goldman Sachs to debut new social networking service #SellSide $GS http://t.co/axOuLL0OX9 via @nypost
Carolyn B Miciano
3 Mar 15 02:37:07
This is a key reversal indicator http://t.co/X7p22JuO99 $GS $COST $FDX
IH News Desk
3 Mar 15 02:33:29
$PCLN Reviews Updated Tuesday, March 3, 2015 05:11:27 AM $EFA $GS $SH $SIL http://t.co/dBGIi1Sjgi
Breaking News
3 Mar 15 01:58:02
$GS-PB: Britain's FTSE gains to trade near record high, Shire up: http://t.co/N5onEFrSsJ
ProVesting
3 Mar 15 01:57:08
$GS-PB: Britain's FTSE gains to trade near record high, Shire up: http://t.co/vt2AqSC8ZI
Stockaholics
3 Mar 15 01:50:19
Our Penny Stock Pick On $THCZ Has Continues To See Gains! Special Update: http://t.co/ZH4BZ571Gt $GS $ZION $ISRA
Gavin Martinsson
3 Mar 15 01:39:00
To go higher? “@Ryan_J_Ferguson: $GS $WFC $PNC all getting ready $XLF”
IH News Desk
3 Mar 15 01:32:15
$PFE Company Info Updated Tuesday, March 3, 2015 04:11:30 AM $GS $CMG $FEYE $DDD http://t.co/wI4BYjFdEd
Craig  Buchman
3 Mar 15 00:33:41
RT @SimsOnFinance: #Yellen, $QQQ 5000, FHFA talks with $GS, Gov't on 'Thin Ice' with $AIG $FNMA #FannieGate: http://t.co/tUE7E1WMNb via @Yo…
Craig  Buchman
3 Mar 15 00:33:30
RT @SimsOnFinance: #Yellen, $QQQ 5000, FHFA talks with $GS, Gov't on 'Thin Ice' with $AIG $FNMA #FannieGate https $QQQ $GS $AIG $FNMA ht…
				
				
By  +Follow October 1, 2013 11:43AM
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