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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
Zubeyr Kamil Açıksar
27 Nov 14 13:05:02
RT @KateKellyCNBC: $GS predicting "very large market surplus" of oil in 2015, says pressure will be on US shale producer, less so on #OPEC,…
LEARNER
27 Nov 14 12:55:14
RT @KateKellyCNBC: $GS predicting "very large market surplus" of oil in 2015, says pressure will be on US shale producer, less so on #OPEC,…
UplandsWealthAgency
27 Nov 14 12:55:01
RT @KateKellyCNBC: $GS predicting "very large market surplus" of oil in 2015, says pressure will be on US shale producer, less so on #OPEC,…
Don
27 Nov 14 12:50:09
RT @KateKellyCNBC: $GS predicting "very large market surplus" of oil in 2015, says pressure will be on US shale producer, less so on #OPEC,…
Craig Adams
27 Nov 14 12:47:30
RT @KateKellyCNBC: $GS predicting "very large market surplus" of oil in 2015, says pressure will be on US shale producer, less so on #OPEC,…
Kate Kelly
27 Nov 14 12:46:57
$GS predicting "very large market surplus" of oil in 2015, says pressure will be on US shale producer, less so on #OPEC, to balance supplies
Jerry Sun
27 Nov 14 12:42:29
The idea of $GS going private gets better and better each time I think about it...too bad the Fed wouldn't allow it to happen
BestBankingCom
27 Nov 14 12:29:42
RT @GoldmanSachs: $GS private wealth head Tucker York discusses opportunities & challenges for private banking in China: http://t.co/ALvafX…
4-traders.com
27 Nov 14 11:20:02
Goldman Sachs : among banks sued for alleged metal price manipulation http://t.co/vjTYW2mkYb $GS $HSBA
PennyStock Zone
27 Nov 14 10:23:28
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Mergers&Stuff
27 Nov 14 10:16:40
RT @GoldmanSachs: $GS private wealth head Tucker York discusses opportunities & challenges for private banking in China: http://t.co/ALvafX…
4-traders.com
27 Nov 14 10:15:05
Standard Bank UK unit in another pickle http://t.co/NJFIvQy8Lp $SBKJ $GS $HSBA $BAS
Bail O'Nomics
27 Nov 14 10:08:00
Citibank Issues Scathing Report Re #Gold Ahead of Swiss Gold Referendum $JPM $BAC $BCS $BAC $HBC $GS $UBS $C http://t.co/FZAEbEEXmQ
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27 Nov 14 10:03:30
This Guy Is Making Millions! Watch This Video Proof Here At http://t.co/SVqoMlijqL .. $GS $ZION $ISRA http://t.co/KZb94DBqvi
Dr. Paul DeSantis
27 Nov 14 09:43:02
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LHommeAncien
27 Nov 14 09:42:47
New $GS partners hazing a "probbie" $cl http://t.co/72lbq7cKmK
Carolyn B Miciano
27 Nov 14 09:40:41
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PennyStock Zone
27 Nov 14 09:11:15
http://t.co/fnBiu3MA1X <-- Awesome trading DVD featuring 3 profitly gurus! #stocks #trading #nyse $FB $TWTR $VSR $MAC $VZ $GS
Pöpülér Uñívérsé®
27 Nov 14 08:56:31
Read about $GS' role in the commodities markets here@..@BravoTatya http://t.co/Cxp5EvPIIM
Pöpülér Uñívérsé®
27 Nov 14 08:50:36
VIDEO: $GS' Richard Tufft talks to the @FT with his surprising take on the health of corporate #Europe (@BravoTatya) http://t.co/oR9CQAVKLg
Pöpülér Uñívérsé®
27 Nov 14 08:49:28
$GS private wealth head Tucker York discusses opportunities & challenges for private banking in China: http://t.co/jAA7mBzkHe (in Chinese)
Donovan Lazar
27 Nov 14 08:49:01
Nice trade...My $GS transactions. Powered by @rizm_io and TradingView http://t.co/wY94GHM7k0 - #algotrading
Carolyn B Miciano
27 Nov 14 08:45:23
How to assess market strength and breadth http://t.co/ynKpbslkIv $GS $COST $FDX
A Fistful of Dollars
27 Nov 14 07:36:19
Nailed it $GS RT @williambanzai7 GOLDMAN SACKS https://t.co/CjENOfxUz3
Pete Stock
27 Nov 14 07:24:20
@CNBCnow Would like to know what $GS is doing with their oil tankers around the world filled with crude. Must be moving out of ports
Lennex
27 Nov 14 07:13:01
RT @FinSentS_SP500: $GS:US 'HSBC, Goldman rigged platinum prices' #GOLDMAN SACHS GROUP INC http://t.co/TZUTk4tuTK #SP500
Thudder & Wicks
27 Nov 14 07:12:53
$GS #Goldman invests $36M in Korean food delivery app #BaedalMinjok http://t.co/EkEzZgGRth http://t.co/rW8xKpQsG4
FinSentS SP500
27 Nov 14 07:12:03
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dividata.com
27 Nov 14 06:00:30
Tomorrow's ex-dividend dates $UNP $GS $KEY $FLR $UHS and 22 more http://t.co/8K76Lb9lPN $$
Niкolai Riazanтsev
27 Nov 14 05:39:32
RT @GoldmanSachs: VIDEO: $GS' Peter Oppenheimer talks #markets, ECB policy & #equity risk premium w/ @CNBC http://t.co/SP3ap8vrIh
Analyst Ratings
27 Nov 14 05:33:47
Seadrill Ltd. was Upgraded to a Hold Rating at Goldman Sachs $SDRL $GS http://t.co/Wp9H5d5VZF
Dheeraj Kumar
27 Nov 14 05:28:16
"@SteveMahoney_: Hey #BlueMix Want to Analyze a $30 Billion DOJ Case Pending? Best, Steve Cc: $gs $ibm"
ReleaseTEAM Canada
27 Nov 14 05:27:04
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27 Nov 14 05:25:32
Hey #BlueMix Want to Analyze a $30 Billion DOJ Case Pending? Best, Steve Cc: $gs $ibm
Steve Mahoney
27 Nov 14 05:13:19
2015 S&P Targeted to be 2100 - 2200 ish by Year-End We agree with Goldman $GS based on SWOT analysis #ShopSmall #InvestSmall @ShopSmall
4-traders.com
27 Nov 14 04:25:02
Goldman Sachs : G Sachs believes Hong Kong's GDP to expand 2.7% in 2015 http://t.co/ZISqfn8wdH $GS
Analyst Ratings
27 Nov 14 04:14:29
Goldman Sachs Assigned a Hold Rating to PetSmart Inc $PETM $GS http://t.co/B3DnR7V76j
Analyst Ratings
27 Nov 14 03:40:02
Goldman Sachs Assigned a Sell Rating to Campbell Soup Company $CPB $GS http://t.co/yx9sQh5nLA
Fayaz Ahmed,CQF
27 Nov 14 03:39:03
“@GoldmanSachs: VIDEO: $GS' Peter Oppenheimer talks #markets, ECB policy & #equity risk premium w/ @CNBC http://t.co/GQXlvxYfSP”
Analyst Ratings
27 Nov 14 03:34:43
Goldman Sachs Assigned a Buy Rating to Towers Watson &#038; Co $TW $GS http://t.co/RhnnXas2ps
4-traders.com
27 Nov 14 03:10:02
HSBC, Goldman Rigged Metals' Prices for Years, Suit Says http://t.co/gvt4bYx0h3 $GS $HSBA $BAS
Niкolai Riazanтsev
27 Nov 14 02:00:29
RT @GoldmanSachs: $GS private wealth head Tucker York discusses opportunities & challenges for private banking in China: http://t.co/ALvafX…
Jonas_Mlynek
27 Nov 14 01:17:03
#GoldmanSachs $GS upgradoval #Barclays $BCS na #Buy a zhoršil #rating #HSBC $HSBC na Neural poté, co se bance nečekaně navýšily náklady.
Steve Mahoney
27 Nov 14 00:59:16
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Stockaholics
27 Nov 14 00:15:37
Our Penny Stock Pick On $STTK Is Up 128.57% In 2 Days! Major Update: http://t.co/oR27rFfh2v $GS $ZION $ISRA
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26 Nov 14 23:53:18
Do You Own the Worst Investment in the Stock Market? http://t.co/4mGigaEKmf via @daily_finance $GS
Shayne Heffernan
26 Nov 14 23:26:24
Top Wall Street Analysts On S&P 500 In 2015: Top Wall Street Analysts On S&P 500 In 2015 $GS, $BAC, $UBS, $WFC... http://t.co/9oPcd13q6l
Lawrencia Jones
26 Nov 14 23:24:03
Top Wall Street Analysts On S&P 500 In 2015: Top Wall Street Analysts On S&P 500 In 2015 $GS, $BAC, $UBS, $WFC... http://t.co/ln2oiFsytN
John Stig
26 Nov 14 23:24:03
Top Wall Street Analysts On S&P 500 In 2015: Top Wall Street Analysts On S&P 500 In 2015 $GS, $BAC, $UBS, $WFC... http://t.co/IHrwvaQxc9
Rajesh Thakur
26 Nov 14 23:24:02
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By  +Follow October 1, 2013 11:43AM
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