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

Halliburton, Baker Hughes agree to extend DOJ review of planned merger

07/13/2015 Halliburton Co. and Baker Hughes Inc. reached a timing agreement with the US Department of Justice’s Antitrust Division to extend DOJ’s review of H...

EIA’s estimates for state crude oil production to be helped by direct survey

07/13/2015 Understanding how crude oil production in US key states has been affected by recent changes in crude oil prices and drilling activity is of great i...

Russia’s Rosneft inks deal for stake in Indian refinery

07/13/2015 OAO Rosneft has entered a preliminary agreement to purchase as much as 49% interest in Essar Energy PLC subsidiary Essar Oil Ltd., including its 20...

MPLX, MarkWest to merge in $15.8 billion deal

07/13/2015 MPLX LP, a Findlay, Ohio-based master limited partnership (MLP) formed by Marathon Petroleum Corp. in 2012, and Denver-based MarkWest Energy Partne...

EPP completes acquisition of EFS Midstream

07/13/2015 Enterprise Products Partners LP (EPP) said it has completed the purchase of EFS Midstream LLC from Pioneer Natural Resources Co. and Reliance Holdi...

BLM proposes updates to its oil, gas measurement requirements

07/13/2015 The US Bureau of Land Management proposed regulations to ensure more accurate measurement, accountability, and royalty payments for oil and gas pro...

MARKET WATCH: NYMEX crude oil prices down slightly pending Iran talk results

07/13/2015 US light, sweet crude oil prices settled down slightly July 10 on the New York market, ending a week in which the front-month contract saw its bigg...

OGJ Newsletter


International news for oil and gas professionals

Inhofe, Lankford say new BIA rules threaten Osage oil operations

07/10/2015 New US Bureau of Indian Affairs regulations that increase production expenses on tribal lands could put the Osage Nation out of business, Oklahoma’...
White Papers

Definitive Guide to Cybersecurity for the Oil & Gas Industry

In the Oil and Gas industry, there is no single adversary and no single threat to the information tech...

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

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
Available Webcasts

Better Data, Better Analytics, Better Decisions

When Tue, Oct 27, 2015

The Oil & Gas industry has large amounts of data stored in multiple systems which are purpose built for certain tasks. However, good decisions require insights based upon the data in all of these systems. These systems in turn do not talk to each other. So the process of analyzing data, gaining insights, and making decisions is a slow one and often a flawed one. Good decisions require accurate analytics and accurate analytics require superior/sustainable data quality and governance. This webinar focuses on:

  • The importance of data quality and governance
  • How technological advances are making data quality and governance sustainable in order to get the accurate analytics to make solid decisions.

Please join us for this webcast sponsored by Seven Lakes Technologies and Noah Consulting.


Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


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