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

WoodMac: Industry cash flow breakevens down by $20/bbl with rapid strategic response

04/13/2015 Rapid and aggressive strategic response by oil and gas companies to low oil prices has driven industry cash flow breakevens down by $20/bbl to $72/...

Report highlights UKCS profitability slide

04/13/2015

The slumping profitability of oil and gas work offshore the UK is evident in a new government report.

MARKET WATCH: NYMEX oil prices rise but analysts advise caution

04/13/2015 US light, sweet crude oil prices climbed on the New York market Apr. 10 but analysts warned that market fundamentals still lack a strong trend that...

IHS: Eagle Ford completions pending

04/13/2015 US oil producers operating in the Eagle Ford shale in South Texas built an inventory of nearly 1,400 drilled but uncompleted (DUC) wells, said an a...

Noble, Edison enter PL001 in North Falkland basin

04/13/2015 Noble Energy Inc. has acquired 75% interest and operatorship of the PL001 license in the North Falkland basin from Argos Resources Ltd. Edison Inte...

In Texas, the mood about jobs is not all that's blue

04/13/2015

To a loyal resident, the only time Texas looks better in the rearview mirror is when oil prices have crashed.

Oman plans petcoke storage for Sohar refinery's post-revamp production

04/13/2015 Oman Oil Refineries & Petroleum Industries Co. (Orpic) has invited global firms to bid on an engineering, procurement, and construction contrac...

Swaps may be a way around US oil export impasse, CSIS forum told

04/13/2015 Crude oil swaps may be a realistic short-term alternative to outright repeal of the US crude export ban for US refiners as well as producers, a spe...

OGJ Newsletter

04/13/2015

International news for oil and gas professionals

White Papers

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

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

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


Cognitive Solutions for Upstream Oil and Gas

When 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

When 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



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

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