MARKET WATCH, May 31: Unleaded gasoline futures hit near-record high on NYMEX


Gasoline futures soared to a near-record high of $1.0652/gal on the New York Mercantile Exchange Tuesday, up 6.28�/gal amid fears of possible shortages at the start of the peak US driving season. The all-time high for unleaded gasoline futures was $1.11/gal in August 1990, officials said.

There may not be enough reformulated gasoline available to supply major US cities that are under mandates by the Environmental Protection Agency to reduce air pollution, officials said.

Expiration of the June contract for gasoline following Tuesday's session added to its price volatility, which prompted two US senators to ask Energy Sec. Bill Richardson to release oil from the Strategic Petroleum Reserve to push down prices (see story in today's Top Stories section).

The July contract for light, sweet NYMEX crude climbed 35� to $30.35/bbl Tuesday, while the August contract was up 34� to $29.41/bbl. In after-hours electronic trading, the July contract eased slightly to $30.33/bbl, while the August contract improved to $29.50/bbl.

Home heating oil also edged up 0.09� to 76.48�/gal Tuesday. NYMEX natural gas for July delivery continued to climb, up 8.6� to an impressive $4.36/Mcf.

Following the close of business Tuesday, NYMEX raised the margins on its Henry Hub gas futures contracts to $3,500 from $2,500 for clearing members; $3,850 from $2,750 for other members; and to $4,725 from $3,375 for customers.

Meanwhile in London, the July contract for North Sea Brent oil settled at $28.96/bbl, down 26� for the day, in a wave of profit-taking after the recent price rally on the International Petroleum Exchange (IPE). But the market was rallying, with North Sea Brent trading at $29.35/bbl in another bull run early Wednesday.

The average price of OPEC's basket of seven crudes increased 16� to $28.46/bbl Tuesday.

IPE's July contract for natural gas also gained 16� to the equivalent of $3.88/Mcf.

On the Singapore Exchange, North Sea Brent dipped 22� to $29/bbl Wednesday, as the Asian Oil & Gas Conference in Kuala Lumpur set a softer tone for that market.

Delegates to that 2-day conference, which ended Tuesday, observed that Asian demand for petroleum products has not been as good as expected. With crude prices in the $29/bbl range, they said, petroleum products were no longer affordable in poor importing markets.

They agreed that prices should be brought to a more manageable level in a "win-win" arrangement for both producers and consumers. Conference sources suggested the possibility of a future meeting of producers and consumers to discuss prices.

Related Articles

EIA: US oil output fell 50,000 b/d in May

07/07/2015 Total US crude oil production dropped 50,000 b/d in May compared with April and is expected to continue falling through early 2016 before growth re...

BLM approves ROW for Elko gas pipeline expansion project

07/07/2015 The US Bureau of Land Management’s Tuscarora, Nev., field office signed a decision record approving a right-of-way for Paiute Pipeline Co.’s (PPC) ...

Obama urged by IPAA president to lift ban on US crude exports

07/07/2015 Commending the administration for its actions allowing some condensate to be exported as a petroleum product, Independent Petroleum Association of ...

AER shuts in 16 Murphy Oil sites in Peace River region for noncompliance

07/07/2015 Alberta Energy Regulator said it has shut in or partially shut in 16 sites operated by Murphy Oil Co. Ltd. in the Peace River region. The sites wer...

MARKET WATCH: NYMEX, Brent oil prices take dive on world oil oversupply concerns

07/07/2015 US light, sweet crude oil prices plummeted more than $4/bbl on the New York market July 6, marking a 5-month low, while Brent crude oil prices on t...

WAFWA: Aerial survey finds lesser prairie chicken population grew

07/06/2015 A recent range-wide aerial survey found the lesser prairie chicken population rose 25% from 2014 to 2015, the Western Association of Fish & Wil...

Macondo settlement seen ‘positive’ for BP

07/06/2015 BP Exploration & Production Inc.’s recent agreement to settle federal and state claims related to the 2010 Macondo blowout and spill improves t...

Court to EPA: Costs matter

07/06/2015 Oil and gas groups did not respond immediately when the US Supreme Court ruled on June 29 that the US Environmental Protection Agency acted unreaso...

Emerging producers offered guidelines for governance

07/06/2015 Like most worthy endeavors, governing oil and gas activity at the national level is easier said than done-especially where oil and gas never before...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts

On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected