Market watch: Energy futures prices advance on reports of refinery problem

By OGJ editors

HOUSTON, June 5 -- Energy futures prices advanced in New York trading Tuesday, buoyed by reports of production problems at a Valero Energy Corp. refinery in Texas City, Tex.

Officials at Valero Energy, based in San Antonio, Tex., said Tuesday that high vibrations in the primary air blower forced the shut down of the newly expanded fluid catalytic cracker unit at that facility. It will take about a week for repairs, they said.

The FCCU has a capacity of 80,000 b/d, while Valero's Texas City refinery has a total capacity of 220,000 b/d.

In other news, a Caracas newspaper reported Alí Rodríguez Araque, the new president of Petroleos de Venezuela SA and outgoing secretary general of the Organization of Petroleum Exporting Countries, will meet with government and industry officials in a visit to the US next week. Rodríguez is now completing a weeklong series of meetings with officials in various OPEC-member countries in the Middle East.

OPEC ministers are scheduled to meet June 26 in Vienna to discuss oil market conditions, but several have already indicated they see no need to increase production. A new secretary general is expected to be selected at that meeting.

Rodríguez is scheduled June 10 to be in Tulsa, where PDVSA's US subsidiary Citgo Petroleum Corp. is based. He is to travel to Washington June 11 for meetings with government officials and to New York City the next day to meet with members of the Council of the Americas.

The July contract for benchmark US sweet, light crudes gained 25¢ to $25.33/bbl Tuesday on the New York Mercantile Exchange. The August contract was up 19¢ to $25.45/bbl. However, both fell in after-hours electronic trading to $24.80/bbl and $24.95/bbl, respectively.

After the close of trading, the American Petroleum Institute reported US oil inventories increased by 6.3 million bbl to 324.2 million last week. US distillate stocks also were up nearly 2.8 million bbl to 127.2 million bbl. But US gasoline stocks declined by 755,000 bbl to 217.7 million bbl.

During regular trading Tuesday on NYMEX, heating oil for July delivery increased by 0.78¢ to 64.28¢/gal. Unleaded gasoline for the same month was up 0.7¢ to 75.34¢/gal. The July natural gas contract also added 8.6¢ to $3.39/Mcf.

The International Petroleum Exchange in London was closed Tuesday for a public holiday.

The average price for OPEC's basket of seven crudes increased by 20¢ to $23.57/bbl Tuesday.

Related Articles

ExxonMobil lets contract for Antwerp refinery

12/17/2014 ExxonMobil Petroleum & Chemical BVBA has let an engineering, procurement, and construction contract to Fluor Corp. for a delayed coker to be in...

BPC report examines 40 possible options to reform RFS

12/16/2014 The Bipartisan Policy Center issued a report outlining 40 possible options for reforming the federal Renewable Fuels Standard in an effort to move ...

Turkish refinery secures Canadian financing

12/16/2014 Export Development Canada (EDC) said it is participating as lead arranger in the $3.3 billion debt-financing consortium supporting STAR Rafineri AS...

Angola’s Sonangol secures $2 billion loan for refinery, other projects

12/15/2014 China Development Bank (CDB) has extended a $2 billion line of credit to state-owned Sonangol EP to support expansion projects in Angola’s oil and ...

Pertamina plans $25 billion revamp of Indonesian refineries

12/15/2014 PT Pertamina (Persoro) has entered agreements with Saudi Aramco, JX Nippon Oil & Energy Corp., and China Petroleum & Chemical Corp. (Sinope...

PBF Energy, PBF Logistics make management changes

12/12/2014 Matthew Lucey, currently executive vice-president of PBF Energy Inc., will succeed Michael Gayda as the company’s president. Todd O’Malley, current...

Repairs under way at ORPIC’s Muscat refinery

12/11/2014 Oman Oil Refineries & Petroleum Industries Co. (ORPIC) said it plans to resume operations at its 106,000-b/d Mina Al Fahal refinery near Muscat...

Phillips 66 advances plans for splitter at Sweeny refinery

12/11/2014 Phillips 66 has filed an application with state regulators for a permit to build a condensate splitter at its 247,000-b/d Sweeny refinery in Old Oc...

Samref wraps Yanbu refinery revamp

12/11/2014 Saudi Aramco-Mobil Refinery Co. Ltd. (Samref), a 50-50 joint venture of Saudi Aramco and ExxonMobil Corp. subsidiary Mobil Yanbu Refining Co. Inc.,...

White Papers

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Available Webcasts



The Future of US Refining

When Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

When Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST



On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


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