• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 1 hour Shale Oil Fiasco
  • 1 hour Everything you think you know about economics is WRONG!
  • 55 mins Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 7 hours USA v China. Which is 'best'?
  • 7 hours Global Debt Worries. How Will This End?
  • 1 day My interview on PDVSA Petrocaribe and corruption
  • 6 hours Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 2 days Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 15 hours Quotes from the Widowmaker
  • 1 day Petroleum Industry Domain Names
  • 14 hours Tesla Launches Faster Third Generation Supercharger
  • 7 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 7 hours Winter Storms Hitting Continental US
Alt Text

Iraq In Crisis As Oil Is Threatened

Both the U.S. and Iran…

Alt Text

Iran's Most Powerful Oil Man Is Under Fire

Bijan Zanganeh, Iran’s long-standing and…

Alt Text

Europe Looks To Become An Electric Vehicle Battery Hub

As electric vehicles continue to…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Energy Commodities See Worst Performance In 19 Years

Despite OPEC’s efforts to boost oil prices, fears of persistent global oversupply slammed the price of oil in the second quarter of this year, pushing prices down for their worst first-half performance since 1998. Not only did oil prices suffer the worst start to a year in almost two decades—energy commodities as a whole logged in their worst H1 in 19 years.

The S&P GSCI Energy Total Return index lost 18.8 percent year-to-date through the end of June 2017, its worst start to a year since 1998, Jodie Gunzberg, Managing Director of Product Management at S&P Dow Jones Indices, said in a note last week.

“Each single commodity inside the energy sector didn’t just lose in the first half of 2017, but lost double digits,” Gunzberg said.

The first half of 2017 was only the second time all six energy commodities—Brent crude, WTI crude, gasoil, heating oil, natural gas, and unleaded gasoline—had dropped in the first half of a year, the first time being in 2010.

In the first half this year, two of the six energy commodities—natural gas and unleaded gasoline—lost more than 20 percent, “the mark that typically denotes a bear market,” Gunzberg noted.

Between January and June, Brent crude lost 17.4 percent, WTI crude oil slumped 18.8 percent, gasoil fell 15.8 percent, heating oil went down 16.5 percent, natural gas plunged 26.4 percent, and unleaded gasoline plummeted 22.3 percent.

The relatively heavy weight of the energy sector in all commodities also dragged down the S&P GSCI Total Return index to a loss of 10.2 percent year-to-date ending June 30, 2017, the worst first-half performance since 2010 when it lost 11.2 percent.

Although the energy commodities performance was poor, 12 of the 24 commodities in the S&P GSCI Total Return index, and three of five sectors, booked gains between January and June 2017. Related: Saudis Poised To Make Largest Crude Export Cut This Year

Without the energy commodities, the commodities booked positive performance in the first half, with the S&P GSCI Non Energy Total Return rising 4.1 percent and outperforming the S&P GSCI Energy Total Return by 22.9 percent, the most in a first half in 27 years, since 1990, Gunzberg said.

In crude oil, rising U.S. shale output in the first half this year and the recovery of Libyan and Nigerian production in recent months—coupled with still high global inventories—were pressuring prices down. In the second half of June, oil slipped into a bear market and prices hit a ten-month low.

Natural gas was the worst-performing major commodity in January and February as the U.S. posted its second warmest February on record, dating back to when data collection began in the 19th century.

Natural gas was also the energy commodity in the S&P GSCI Energy Total Return that performed the worst in the first half of 2017.

Just before the end of H1, Gunzberg said in a note: “Energy is back in a bear market now led by oil’s slide mainly due to rising output from Libya and Nigeria, two OPEC members exempt from cutting supply.”

The market is weighing the possibility of OPEC potentially putting a limit on Nigerian and Libyan production, but it’s also waiting to see convincing evidence that global inventories have started dropping faster than in previous months.

Many investment banks now believe that the slower-than-anticipated inventory drawdown would keep oil prices depressed well into 2018.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play