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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]

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Results for gs
leahanne
27 May 15 18:51:33
YRI.TO Yamana Gold Inc. Day High http://t.co/WmHlhQmYXL $YRI.TO $QID $AZFL $GS #YRI.TO #nasdaq #investing
nasdaqfan
27 May 15 18:51:16
XOM Exxon Mobil Corp. Bid http://t.co/I79jI12gL8 $XOM $BABA $GS $AET #XOM #tradeideas #finance
jim50
27 May 15 18:50:05
XLB Materials Select Sector SPDR Stock Forum http://t.co/2OgElg2VyM $XLB $GS $ADM $SLW #XLB #stocks #tradeideas
clayton
27 May 15 18:49:36
XIV VelocityShares Daily Inverse VIX Short Term ETN Summary http://t.co/sxbq428HLT $XIV $GS $ENB.TO $ABC #XIV #tradeideas #pennystocks
Emylers
27 May 15 18:48:37
UPRO ProShares UltraPro S&P 500 Ideas http://t.co/LKjeViHmwD $UPRO $GS $DXJ $SNDK #UPRO #investing #nasdaq
Stock Forums
27 May 15 18:45:34
SLV iShares Silver Trust Short Sales http://t.co/6nnWevmCD5 $SLV $SMN $ASHR $GS #SLV #stock #tradeideas
Breaking News
27 May 15 18:43:02
$GS: The Tanker Market Is Sending a Big Warning to Oil Bulls: http://t.co/9w62LngTcm
PolgarStocks
27 May 15 18:42:51
OPXA Opexa Therapeutics, Inc. Stock Forum http://t.co/yf1SE0zJme $OPXA $C $GS $AA #OPXA #investing #stockmarket
Investors Hangout
27 May 15 18:41:05
ILMN Illumina, Inc. Bid http://t.co/f7w5X4bIgo $ILMN $CEMP $GS $ACT #ILMN #nasdaq #stocks
Stock Forums
27 May 15 18:40:06
GS Goldman Sachs Group, Inc. E.P.S. http://t.co/gSjpEvVvum $GS $CYBR $XLI $XLV #GS #nasdaq #share
lookn4wins
27 May 15 18:40:06
HNR Harvest Natural Resources, Inc. Chart http://t.co/BKMZssHNzE $HNR $IDRA $CSIQ $GS #HNR #share #nasdaq
Stock Forums
27 May 15 18:40:04
GS Goldman Sachs Group, Inc. 52Wk Low http://t.co/Hnf1u6scTP $GS $NXPI $GMCR $UUP #GS #stockmarket #finance
IH News Desk
27 May 15 18:40:04
GS Goldman Sachs Group, Inc. P/E Ratio http://t.co/1SQ5M8DG1j $GS $EOX $OXY $AET #GS #investing #investing
Rosner Stocks
27 May 15 18:39:41
GS Goldman Sachs Group, Inc. Company Info http://t.co/wbFwvFDanA $GS $AMBS $ABBV $USO #GS #tradeideas #finance
Rosner Stocks
27 May 15 18:39:40
GS Goldman Sachs Group, Inc. Ex-Div Date http://t.co/16ly5JVcVL $GS $TRQ $QLD $HJOE #GS #stockmarket #share
nasdaqfan
27 May 15 18:39:35
GS Goldman Sachs Group, Inc. E.P.S. http://t.co/Al8wh3PivC $GS $EEM $IDRA $UNG #GS #stock #stock
nasdaqfan
27 May 15 18:39:34
GS Goldman Sachs Group, Inc. Day Low http://t.co/6ghRCyE8n9 $GS $TBT $MNKD $ZIOP #GS #invest #tradeideas
Lucky Jimmy
27 May 15 18:39:34
GS Goldman Sachs Group, Inc. Tick http://t.co/vJqaDUKF64 $GS $CTIX $EWG $CEMP #GS #finance #stock
Investors Hangout
27 May 15 18:39:34
GS Goldman Sachs Group, Inc. 52Wk Low http://t.co/qxJmy366WJ $GS $SWKS $XLB $DD #GS #tradeideas #nasdaq
danrocks
27 May 15 18:39:19
GS Goldman Sachs Group, Inc. Ask http://t.co/F8bjChihTt $GS $SLW $NYMX $EEM #GS #stockmarket #tradeideas
Investors Hangout
27 May 15 18:39:19
GS Goldman Sachs Group, Inc. Yield http://t.co/75GlySsO1x $GS $RSP $YPF $UA #GS #share #finance
Jake13
27 May 15 18:39:18
GS Goldman Sachs Group, Inc. Company Info http://t.co/7i850kphPk $GS $ABC $AAPL $CTIX #GS #investing #finance
PolgarStocks
27 May 15 18:39:13
FV First Trust Dorsey Wright Focus 5 ETF Bid Size http://t.co/qscNpXFHBt $FV $SMH $BRWC $GS #FV #share #finance
leahanne
27 May 15 18:37:34
EWY South Korea iShares Ask Size http://t.co/CCcV6BhfBQ $EWY $AAPL $GS $SH #EWY #investing #stockmarket
Stock Forums
27 May 15 18:37:34
ERY Direxion Daily Energy Bear 3x Shares Day Low http://t.co/F0EqPLKjFG $ERY $GS $BAYP $BAA #ERY #investing #stockmarket
StockNewsWires
27 May 15 18:37:02
$GS: Evergrande Real Estate Group Suspends Stock Trading in Hong Kong: http://t.co/akgfxuHP4o
Jake13
27 May 15 18:36:52
DE Deere & Co. Open http://t.co/sQzqOGqeYs $DE $GS $ERX $JBLU #DE #tradeideas #stock
Investors Hangout
27 May 15 18:36:34
DXJ Wisdom Tree Japan Hedged Equity Bid http://t.co/nzXHroONzp $DXJ $GS $XIV $KR #DXJ #nasdaq #pennystocks
DennyT
27 May 15 18:36:34
DIS Walt Disney Co. Yield http://t.co/Pe7Dj1GhjJ $DIS $HPQ $UPRO $GS #DIS #nasdaq #stocks
Stock_Tracker
27 May 15 18:36:16
CVX Chevron Corp. News http://t.co/lV4Ei0sCtE $CVX $BRWC $GS $AMBS #CVX #tradeideas #stocks
lookn4wins
27 May 15 18:35:07
DD DuPont Co. EOD Data http://t.co/gLzXb39jhz $DD $GS $MBLY $PAYC #DD #stocks #investing
danrocks
27 May 15 18:33:21
BAC Bank Of America Corp. E.P.S. http://t.co/15Xd5ZjiT7 $BAC $GS $VGTL $BCE.TO #BAC #nasdaq #investing
Jake13
27 May 15 18:33:20
BAYP Bayport Intl Holdings, Inc. Ex-Div Date http://t.co/58a2JwLOkz $BAYP $DIA $IBB $GS #BAYP #invest #invest
Stock_Tracker
27 May 15 18:33:17
BCE.TO BCE, Inc. Message Board Posts http://t.co/YusjDOrLch $BCE.TO $GS $YOKU $DE #BCE.TO #pennystocks #nasdaq
leahanne
27 May 15 18:32:05
AMBA Ambarella, Inc. Chart http://t.co/MMCfEDHmAo $AMBA $GS $DE $UGAZ #AMBA #pennystocks #pennystocks
Rosner Stocks
27 May 15 18:31:37
ACT Actavis, Inc. Investor Opinions http://t.co/LyHQUiQx7a $ACT $AMBA $PVSP $GS #ACT #stockmarket #stocks
danrocks
27 May 15 18:31:35
ADM Archer Daniels Midland Co. 52Wk Low http://t.co/nwyXAeS38V $ADM $IBB $EWS $GS #ADM #stocks #tradeideas
IH NASDAQ OMX
27 May 15 18:31:35
ADMD Advanced Medical Isotope Corp. Short Sales http://t.co/6HHrA7RO8N $ADMD $HPQ $GS $USO #ADMD #stockmarket #stock
PolgarStocks
27 May 15 18:31:34
AAL American Airlines Group Inc. E.P.S. http://t.co/rziDg7SjFy $AAL $GS $FSI $PPG #AAL #stock #investing
IH NASDAQ OMX
27 May 15 18:31:34
ADMD Advanced Medical Isotope Corp. Open http://t.co/4ZHifWQfNd $ADMD $GS $COH $ABBV #ADMD #stockmarket #nasdaq
Ronnie Matrix.
27 May 15 18:19:41
$GS #EquityMkts https://t.co/OyKBjr8Jo8
Harris Market Trends
27 May 15 18:14:21
$GS chart https://t.co/5UXLsIX2e2 via http://t.co/9AqfQvl8JP long set-up
Eternity101
27 May 15 17:43:37
BRADLEY TURN DATES .. all (that i'm aware of).. found here in MY tweets https://t.co/WiQfikM8tL $DJIA $SPX $NDX $IWM $GOOGL $TSLA $AAPL $GS
Ardavan Homayounfar
27 May 15 17:32:07
Goldman Sachs: The 7 megatrends that will dominate the global auto industry http://t.co/OnXWZ134O5 $GS #ConnectedCars
Eternity101
27 May 15 17:26:13
$GS hit a FRESH NEW 52 week HIGH today @ 209.68 -- told u it would hit the 210 area THIS week. will 2morrow ex-divvy TOMORROW, Thurs May 28
James DiPlata
27 May 15 17:16:45
RT @RedDogT3: Daily Recap:video & look ahead $spy $spx $aapl $amzn $nflx $fb $baba $altr $gs $ms $iyt $feye $googl http://t.co/qaSdoOdjde
Invest | Donate
27 May 15 17:04:39
@danrocks4: DE Deere & Co. 52Wk Low http://t.co/eXsn9jSPsm $DE $PRTA $GS $YOKU #DE #stocks #invest
Invest | Donate
27 May 15 17:04:38
@leahanneta: GS Goldman Sachs Group, Inc. Market Cap http://t.co/wl9eYUcuDs $GS $SLTD $ERX $TIF #GS #invest #stock
Francisco de la Lama
27 May 15 17:00:03
RT @MKTWgoldstein: I guess you have to draw line somewhere, but seems remiss to do study on big bank asset share and exclude $GS & $MS http…
killer money
27 May 15 16:41:22
RT @robwilliamsNY: Goldman Sachs: Economic Recovery Boosts Chances of Rate Hikes http://t.co/CRdqbfz16r $GS http://t.co/BniCJhJK9l
				
				
By  +Follow October 1, 2013 11:43AM
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