Prices for Canadian crude continued to trend downward in January, with near-month Net Energy Inc. Western Canada Select (WCS) down 27%, falling to an average of US$17.46 per barrel (bbl) from $23.77 a bbl in December 2015.
It was the lowest monthly average since the Daily Oil Bulletin began reporting Net Energy prices in January 2011.
Net Energy Sweet averaged $27.60 a bbl, off 18.4% from $33.81 a bbl the previous month. The differential between Light and WCS widened slightly to an average of $10.15 a bbl from $10.04 in December.
Net Energy Syncrude prices fared slightly better, declining 16.5% to an average of $31.37 per bbl in January from $37.56 a bbl a month earlier.
AECO spot natural gas was well below $3 per gigajoule for the 13th consecutive month in January, gaining six cents, rising to $2.25 per gigajoule from $2.19 a gigajoule in December 2015. On the New York Mercantile Exchange, prices were up 9% to US$2.23 per mmBtu from $2.04 per mmBtu the previous month.
Globally, NYMEX Light WTI was down 15% for the month, averaging US$31.75 per bbl compared with $37.37 a bbl in December. January’s price was the lowest for the month since November 2003 when WTI averaged $30.99 a bbl. Since 2000, the lowest WTI price was $19.43 a bbl in December 2001, three months after the attack on the World Trade Centre.
North Sea Brent was off nearly 18% for the month to $32.18 a bbl from $39.21 a bbl as Iran prepared to bring new production on the market amid growing concerns about a weak global economy, particularly slower growth in China.
