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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
andrew2027554
29 Sep 14 22:46:18
@loveradioru @GoldmanSachs What is the #InternetOfThings? $GS analysts break down how it works & why it matters: http://t.co/dK7GbsaJPE
Ohio Spot Light
29 Sep 14 20:41:55
RT @stock_coach: Nice wins on these early bounces for quick trades on $AAPL $FB and $GS and our puts swings still nice! http://t.co/jaTB91N…
Douglas Crets
29 Sep 14 20:30:36
@Chrisyahahha Best ploy for me right now is finding value stocks and good dividend payers $GS, $BA, and $MSFT. I don't go short these days
Eternity101
29 Sep 14 20:12:10
I N D I C A T O R S $BANK $RTH $VXO $VIX $TNX $TLT $SOX $JJC $GLD $GS $TRIN $TICK $OEX $DJU $FXY $BPSPX http://t.co/hSgMbb3o3d
Patrick
29 Sep 14 19:00:04
#SENTISHIFTUP $O $RGDO $AA $UGAZ $HE $CONN $RT $RSH $GS $V #quantheta
PennyStock Zone
29 Sep 14 18:55:16
Replicate multimillionaire strategy easy to copy! Subscription is cheap at twice the price! http://t.co/Ho9ydXHTWl $C $GS $YHOO $AOL $GTAT
Rick Nowak
29 Sep 14 18:46:18
RT @elidiolatorre: “@GoldmanSachs: $GS analysts break down the #InternetOfThings & predict its impact. http://t.co/GeJa9t4BdG #IoT http://t…
FrancoisFranceschini
29 Sep 14 18:42:57
RT @elidiolatorre: “@GoldmanSachs: $GS analysts break down the #InternetOfThings & predict its impact. http://t.co/GeJa9t4BdG #IoT http://t…
carlos barsallo
29 Sep 14 18:42:04
RT @WillauerProsky: Bravo @carmenmsegarra!! A MUST LISTEN #FED Whistleblower secret tapes of #regulation(ish) of $GS #corpgov @ProPublica h…
GAP.works
29 Sep 14 18:39:07
RT @WillauerProsky: Bravo @carmenmsegarra!! A MUST LISTEN #FED Whistleblower secret tapes of #regulation(ish) of $GS #corpgov @ProPublica h…
Corporate Governance
29 Sep 14 18:39:07
RT @WillauerProsky: Bravo @carmenmsegarra!! A MUST LISTEN #FED Whistleblower secret tapes of #regulation(ish) of $GS #corpgov @ProPublica h…
thugtrader
29 Sep 14 18:38:43
@MacroHedge regardless. With $gs looking to double from $160, mkt ain't going down much. But wtf does an idiot like me know!?
WPWAM
29 Sep 14 18:37:51
Bravo @carmenmsegarra!! A MUST LISTEN #FED Whistleblower secret tapes of #regulation(ish) of $GS #corpgov @ProPublica http://t.co/NHjGWm4ZDq
ileana fas
29 Sep 14 18:31:01
RT @elidiolatorre: “@GoldmanSachs: $GS analysts break down the #InternetOfThings & predict its impact. http://t.co/GeJa9t4BdG #IoT http://t…
OTPicks.com
29 Sep 14 18:26:40
http://t.co/hjgLwIcNgz danrocks: $DUST Is this one to watch? $ERX $SPXL $BITA $GS: danrocks http://t.co/vFCSTuJMux http://t.co/hjgLwIcNgz
OTPicks.com
29 Sep 14 18:26:39
http://t.co/QkCFZ8H3V8 danrocks: $DUST Is this one to watch? $ERX $SPXL $BITA $GS: danrocks http://t.co/APuEvb8dyZ http://t.co/QkCFZ8H3V8
Elidio La Torre
29 Sep 14 18:09:34
“@GoldmanSachs: $GS analysts break down the #InternetOfThings & predict its impact. http://t.co/GeJa9t4BdG #IoT http://t.co/Sn97jcgFHf”
bizrockstar
29 Sep 14 17:55:37
RT @GoldmanSachs: Hedge funds drawn to #Shanghai #HK #StockConnect, says Shane Bolton of $GS prime brokerage via @BloombergNews: http://t.c…
Kristin
29 Sep 14 17:55:34
$F warned of not achieving its 2014 goal due to EU weakness, $GS cuts China's GDP growth to 7.1% from 7.6% $JPY mixed bag of Macro data.$SPY
Fed Porn
29 Sep 14 17:46:31
When you frontrun HFTs with your own HFTs give me a #hellyeah $GS cc @GoldmanSachs http://t.co/tjLym6n04S
Patrick
29 Sep 14 17:00:04
#SENTISHIFTUP $UGAZ $AA $RGDO $HE $O $GS $CONN $RT $GDX $RSH #quantheta
Patrick
29 Sep 14 16:00:04
#SENTISHIFTUP $UGAZ $AA $RGDO $HE $O $GS $CONN $RSH $ASNA $GDX #quantheta
Carolyn B Miciano
29 Sep 14 15:53:13
Why conditional orders are great for busy traders http://t.co/l5BOj6kZvC $GS $COST $FDX
TP Strategic Partner
29 Sep 14 15:45:40
We own $GS We see a $245.00 breakout in 2015
agungtri
29 Sep 14 15:20:06
RT @BarbBleu: Banks explaining #IoT? Hmm @GoldmanSachs What's #InternetOfThings? $GS anlysts xplain how it works & why it matters http://t.…
NetofEverything
29 Sep 14 15:19:45
RT @BarbBleu: Banks explaining #IoT? Hmm @GoldmanSachs What's #InternetOfThings? $GS anlysts xplain how it works & why it matters http://t.…
Craig P. Motlin
29 Sep 14 15:12:06
RT @GSCareers: PHOTO from San Francisco: $GS' Donald Raab speaks to #developer community at @JavaOneConf keynote #JavaHub #JavaOne http://t…
Barbara
29 Sep 14 15:08:56
Banks explaining #IoT? Hmm @GoldmanSachs What's #InternetOfThings? $GS anlysts xplain how it works & why it matters http://t.co/mkREP3o80x
Kevbeau68
29 Sep 14 15:08:20
RT @Briefingcom: #Trade Review: $GS Swing Long for +13 points or +8% http://t.co/vOMgRZ1KjF #SwingTrading #set-ups #Momentum #Trend #RiskMa…
Briefing.com
29 Sep 14 15:03:09
#Trade Review: $GS Swing Long for +13 points or +8% http://t.co/vOMgRZ1KjF #SwingTrading #set-ups #Momentum #Trend #RiskManagement #trading
Anthony DePaola
29 Sep 14 14:35:52
Guy Adami brown-noses $MS and $GS like no tmrw. @talkequities
Stockaholics
29 Sep 14 14:34:27
$VOIS gained 218.52% in less than 3 weeks, after our Penny Stock Alerts! Major Update: http://t.co/HglCNdSVSO $GS $ZION $ISRA
NASDAQ
29 Sep 14 14:32:01
$GS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/pQdlEQlpys
NASDAQ
29 Sep 14 14:23:10
$GS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/GwxeuBtIRg
NASDAQ
29 Sep 14 14:19:09
$GS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/D8WpX7zFi1
Mike Valletutti, CTA
29 Sep 14 14:08:21
Top 5 stocks remain $BAC $GS $GOOGL $FB $TBT
Market Newswire
29 Sep 14 14:01:03
Goldman Limits Bankers Trade to Remove Conflict of Interest - September 29, 2014 - http://t.co/VcTYbXnzkP $GS #wallstreet #stocks #stock
Patrick
29 Sep 14 14:00:04
#SENTISHIFTUP $UGAZ $RGDO $O $CONN $GDX $GS $RSH $UNG $VGGL $MNGA #quantheta
Jacob Harper
29 Sep 14 13:50:02
What’s the Price of a Carmen Segarra? $gs $jpm $bac $c http://t.co/vL6rTJVi2U
Consestimate
29 Sep 14 13:37:01
Is The Real Issue In Goldman Sachs / Fed / Segarra Tapes Being Addressed?. $GS. http://t.co/D2R10WjgWE
#RainbowGirls
29 Sep 14 13:34:50
RT @GS10KWomen: $GS' Dina Powell @GayleKing @NOIweala @TinaBrownLM & more share their best advice for women #entrepreneurs: http://t.co/FKo…
Lisa Cantu
29 Sep 14 13:33:25
RT @GS10KWomen: $GS' Dina Powell @GayleKing @NOIweala @TinaBrownLM & more share their best advice for women #entrepreneurs: http://t.co/FKo…
SocialImpactFinance
29 Sep 14 13:33:17
RT @GS10KWomen: $GS' Dina Powell @GayleKing @NOIweala @TinaBrownLM & more share their best advice for women #entrepreneurs: http://t.co/FKo…
Goldman Sachs
29 Sep 14 13:30:57
RT @GS10KWomen: $GS' Dina Powell @GayleKing @NOIweala @TinaBrownLM & more share their best advice for women #entrepreneurs: http://t.co/FKo…
Brand Mentors
29 Sep 14 13:29:27
RT @GS10KWomen: $GS' Dina Powell @GayleKing @NOIweala @TinaBrownLM & more share their best advice for women #entrepreneurs: http://t.co/FKo…
GS 10,000 Women
29 Sep 14 13:23:14
$GS' Dina Powell @GayleKing @NOIweala @TinaBrownLM & more share their best advice for women #entrepreneurs: http://t.co/FKoxraG3GZ #CGI2014
Mark Melin
29 Sep 14 13:16:25
RT @valuewalk: Is The Real Issue In Goldman Sachs / Fed / Segarra Tapes Being Addressed? by @MarkMelin http://t.co/wrgOSe80bb $GS
D
29 Sep 14 13:14:52
$GS key S 182.45
Glass-Steagall
29 Sep 14 13:11:29
Senate $GS "commodity operations..deemed permissible by (#GLBAct)" @gmorgenson http://t.co/6saFdUVxBz Pass http://t.co/EsclDbQdix @SenWarren
FRANKLIN1stFinancial
29 Sep 14 13:04:20
RT @GoldmanSachs: RT @GSCareers: ICYMI: $GS is #8 on the World's Top Employers for New Grads List: http://t.co/8bprR8qUQD via @CNNMoney #ca…
				
				
By  +Follow October 1, 2013 11:43AM
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