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Oil and Natural Gas Futures Diverge Under Shadow of Government Shutdown

By  +Follow October 1, 2013 11:43AM
Tickers Mentioned:

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
Stock Relay
31 Oct 14 01:57:19
$EFA Day High Click Here: http://t.co/bE1PUf5cwh Also See: $HYG $GS $FNV $BTU ~
IH News Desk
31 Oct 14 01:47:23
$DE Exchange Click Here: http://t.co/w7KSTniMcQ Also See: $DUST $ELRA $GS $VXX ~
31 Oct 14 01:43:42
RT @KevinBCook: $ES_F Yest $GS cut $SPX 2015 EPS to $122 but said 100bp move in GDP =$6. We just got 50bp better surprise for Q3. More surp…
31 Oct 14 01:35:59
RT @GoldmanSachs: $GS proud to win @NovogradacCPAs community dev awards for 2 projects cc @Liifund #NOLA - more: http://t.co/YiDyTBRbOo htt…
31 Oct 14 01:35:23
RT @GoldmanSachs: $GS proud to win @NovogradacCPAs community dev awards for 2 projects cc @Liifund #NOLA - more: http://t.co/YiDyTBRbOo htt…
31 Oct 14 01:22:38
$DECK Bid Size Click Here: http://t.co/h58ALpKCCI Also See: $UVXY $GILD $HD $GS ~
Langan Stocks
31 Oct 14 00:44:15
$DAL Message Board Posts Click Here: http://t.co/3bnNtIKoGL Also See: $MNST $AMGN $XLY $GS ~
31 Oct 14 00:36:13
RT @GoldmanSachs: $GS proud to win @NovogradacCPAs community dev awards for 2 projects cc @Liifund #NOLA - more: http://t.co/YiDyTBRbOo htt…
31 Oct 14 00:35:02
Goldman Sachs : Baseless claims http://t.co/Zl5UBMdQyS $GS
Stock Relay
31 Oct 14 00:33:51
$DE Change Click Here: http://t.co/q9dQ466IaX Also See: $GDXJ $CSCO $GS $MA ~
31 Oct 14 00:29:58
$CSX 52Wk Low Click Here: http://t.co/ddC5RLvjb6 Also See: $BTU $GPRO $XLE $GS ~
FinSentS SP500
31 Oct 14 00:16:56
$GS:US Citigroup restates earnings because of regulatory probes #GOLDMAN SACHS GROUP INC http://t.co/75qoLqGQfB #SP500
31 Oct 14 00:00:44
RT @GoldmanSachs: $GS proud to win @NovogradacCPAs community dev awards for 2 projects cc @Liifund #NOLA - more: http://t.co/YiDyTBRbOo htt…
Joseph Catania
30 Oct 14 23:46:34
#Buy $DNAX #DNA #Energy #Drinks #New #CEO #Real #Experience > $FNMA $HEMP $PMCM $PHOT $PLPL $CBIS $JPM $GS $MS $TSLA $FB $TWTR $GOOG $MSFT
Stock Relay
30 Oct 14 23:13:14
$CSX News Click Here: http://t.co/JBgXENUhtm Also See: $XLK $BIDU $GS $HYG ~
30 Oct 14 22:59:31
30 Oct 14 22:39:48
$CCO.TO Yield Click Here: http://t.co/4YSSwWn8Fl Also See: $ELTP $FXI $UUP $GS ~
30 Oct 14 22:04:21
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $GS $ZION $ISRA
30 Oct 14 21:56:49
$BMRN Current Price Click Here: http://t.co/8AdJC5b5jd Also See: $GS $FNMA $VXX $FCEL ~
30 Oct 14 21:42:02
$BITA Day Low Click Here: http://t.co/UYLOoPAWE5 Also See: $LVS $GS $ILMN $RIG ~
Bidness Etc
30 Oct 14 21:15:03
Five financial institutions think Alibaba stock deserves either an Overweight or Buy rating http://t.co/mlJ6WUG9yy $GS $BABA
Langan Stocks
30 Oct 14 20:59:57
$BBH Open Click Here: http://t.co/zxEEEClsjT Also See: $ABX $AMRN $GS $FLY.V ~
Stock Relay
30 Oct 14 20:51:53
$BITA Tick Click Here: http://t.co/W8ZWPREGEK Also See: $GS $BABA $GRCU $MS ~
Ben Franklin
30 Oct 14 19:55:03
RT @RudyHavenstein: "...if these institutions are really that unlucky, then perhaps they shouldn't be in the business of minding other peo…
30 Oct 14 19:39:54
@nanexllc I will be shorting $GS in overseas markets in anticipation of the bankruptcy filing Friday. Oh the humanity....
30 Oct 14 18:27:56
RT @TweetLeni: Still long $GS and $JPM
30 Oct 14 18:12:18
$AKRX Volume Click Here: http://t.co/2gh7UPMeH4 Also See: $ORCL $ABX $GS $VIMC ~
Langan Stocks
30 Oct 14 17:40:29
$ABBV Exchange Click Here: http://t.co/AkKGJKPC9u Also See: $GS $MU $VXX $VIMC ~
Stock Relay
30 Oct 14 17:36:25
$AKS Day High Click Here: http://t.co/oAc0L2bscB Also See: $MU $GS $ING $GOOG ~
30 Oct 14 16:54:35
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $GS $ZION $ISRA
Nine Stocks
30 Oct 14 16:51:59
MA10-MA50 Bull Crossover Stocks (Oct. 30): $AN, $APOL, $AXL, $BBBY, $GS, $MWV http://t.co/tQ65wn55mZ
Carolyn B Miciano
30 Oct 14 16:50:32
Free course on Straddle options trade http://t.co/ecJkEbpeto $GS $COST $FDX
Stock Relay
30 Oct 14 16:36:24
$AAPL % Change Click Here: http://t.co/RoAFQSUWfJ Also See: $GS $SLTD $GPRO $DBA ~
30 Oct 14 16:29:14
http://t.co/hjgLwIcNgz DennyT: BIIB Basic Tech. Analysis $BIIB $LVS $GS $SLTD: DennyT http://t.co/CSn07DnNIE http://t.co/hjgLwIcNgz
30 Oct 14 16:29:12
http://t.co/QkCFZ8H3V8 DennyT: BIIB Basic Tech. Analysis $BIIB $LVS $GS $SLTD: DennyT http://t.co/jQICyBI28I http://t.co/QkCFZ8H3V8
30 Oct 14 16:25:03
RT @KevinBCook: $ES_F Yest $GS cut $SPX 2015 EPS to $122 but said 100bp move in GDP =$6. We just got 50bp better surprise for Q3. More surp…
Stock Moo
30 Oct 14 16:02:25
$gs: Regal Beloit Corporation To Present At The Goldman Sachs Industrials Conference http://t.co/oglKxCKmS2
30 Oct 14 16:01:08
Dow #Stocks Trend $V $JNJ $PFE $HD $NKE $MCD $PG $AXP $JPM $UNH $MMM $TRV $BA $GS $VZ $CSCO $DIS $UTX $CVX $CAT @ http://t.co/TvzJfd0RGT
30 Oct 14 15:35:02
Bankers' pay JP Morgan directors top table on pounds 461,000 a year http://t.co/dFRVfjps3D $JPM $GS $MS
Stock Moo
30 Oct 14 15:02:37
$gs: Some MF Global creditors to get first payout, 3 years after bankruptcy http://t.co/bYl2aCPDhy
Bidness Etc
30 Oct 14 14:54:58
#Goldman Isn‘t Sold On #Alibaba; Issues Neutral Rating http://t.co/TuTstdvtu1 $GS $BABA
Jordan Hopper
30 Oct 14 14:52:00
Sold $AAPL long position yesterday at $107.10. Hoping to get back in under $105. Initiated new long position in $GS late afternoon today.
Alpha Maven
30 Oct 14 14:50:36
RT @bespokeinvest: The 5 stocks with the biggest weightings in the DJIA aren't even in the top 20 for weightings in the S&P 500. $V $GS $IB…
30 Oct 14 14:25:52
RT @IPOtweet: Billion dollar biotech: FibroGen sets terms for $124 million IPO $FGEN $GS #Biotech $IPO #IPO http://t.co/u1QWgu20hE
Gurdeep Singh
30 Oct 14 14:15:47
$LNKD up $7 after hours!! $V went up $22 today!! $AMZN $BBY $BA $AIG $GS $MA $BP are my other winners...portfolio slowly recovering #stocks
Stock Relay
30 Oct 14 14:10:47
$JNK Current Price Click Here: http://t.co/xe6foC3PtY Also See: $TSLA $GS $MCD $ACHN ~
Joshua Sanchez
30 Oct 14 14:10:14
"@flounder: $SPY Someone at 200 West St please go to the basement and restart the $GS algo server please. Its gone nuts"
Joshua Sanchez
30 Oct 14 14:09:08
$GS the only financial I love xD
Investors Hangout
30 Oct 14 13:56:34
$KO E.P.S. Click Here: http://t.co/XXTiTFIcVb Also See: $EWZ $INTC $GS $UVXY ~
30 Oct 14 13:55:03
$KO Dividend Click Here: http://t.co/5XzYc6U3Sv Also See: $X $JNK $GS $XLP ~
By  +Follow October 1, 2013 11:43AM



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