MARKET WATCH: Crude oil price declines for fifth straight session

Crude oil prices continued falling for the fifth consecutive session, with the front-month contract down 1% May 8 in a mixed New York futures market amid suggestions Saudi Arabia may release more oil to help reduce prices.

“On the other hand, expectations for strong electric demand continuing to drive up demand for natural gas sent that commodity up 2.4%,” said analysts in the Houston office of Raymond James & Associates Inc.

Crude sold as low as $95.52/bbl prior to “a decent rally” near the close of the New York market that, for the second consecutive session, recouped much—but not all—of the day’s earlier loss. “Oil products were particularly resilient,” said James Zhang at Standard New York Securities Inc., the Standard Bank Group. “Time spreads were soft but made a decent recovery from an intraday sell-off.”

Olivier Jakob at Petromatrix in Zug, Switzerland, said, “Crude oil prices were again under heavy pressure, but the support at the approach of $110/bbl on Brent and $95/bbl [for West Texas Intermediate] continues to be well-defended.” In the first two New York sessions this week, he said, “The intraday patterns were very similar in magnitude and timing.”

Jakob said, “The fate of Europe continues to be the main macro input, and we are living just another episode of the same story. The problem of Europe is relatively simple: Either the South has to pay for the North, or the North has to pay for the South; and given that Europe is not a nation, it is very difficult to force one European region to sacrifice itself for the other. The euro-dollar [valuation] remains under pressure, but with some strong interest to maintain it above 1.30 to prevent a risk-off in equities in front of the Facebook initial public offering.”

US inventories

The Energy Information Administration said commercial US inventories of crude increased 3.7 million bbl to 379.5 million bbl in the week ended May 4, exceeding Wall Street’s consensus for a 2 million bbl build. Gasoline stocks dropped 2.6 million bbl to 207.1 million bbl. Analysts were expecting an 800,000 bbl decline. Both finished gasoline and blending components decreased last week. Distillate fuel inventories fell 3.3 million bbl to 120.8 million bbl, far exceeding the market’s outlook for a 100,000 bbl decline.

Imports of crude into the US grew by 145,000 b/d to 9 million b/d last week. In the 4 weeks through May 4, US imports of crude averaged 8.8 million b/d, just 28,000 b/d more than in the comparable period a year ago. Gasoline imports last week averaged 607,000 b/d, while distillate fuel imports averaged 47,000 b/d.

The input of crude into US refineries increased 35,000 b/d to 14.7 million b/d last week with units operating at 86.4% of capacity. Gasoline production increased to 9.1 million b/d, and distillate fuel production increased to 4.4 million b/d.

Energy prices

The June contract for benchmark US light, sweet crudes dropped 93¢ to $97.01/bbl on the New York Mercantile Exchange. The July contract lost 94¢ to $97.37/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was down 93¢ to $97.01/bbl.

Heating oil for June delivery inched up 0.87¢ to $2.99/gal on NYMEX. Reformulated stock for oxygenate blending for the same month increased 2.03¢ and also closed at a rounded $2.99/gal.

The June natural gas contract advanced 5.7¢ to $2.39/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., decreased 2.8¢ to $2.27/MMbtu.

In London, the June IPE contract for North Sea Brent lost 43¢ to $112.73/bbl. Gas oil for May dropped $6.25 to $945.25/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes was down 54¢ to $109.58/bbl.

Contact Sam Fletcher at samf@ogjonline.com.

Related Articles

BG’s 2015 budget ‘significantly lower than 2014’

02/03/2015 BG Group plans capital expenditures on a cash basis of $6-7 billion in 2015, a range it says is “significantly lower than 2014” due to “a lower oil...

BP trims capital budget by $4-6 billion

02/03/2015 BP PLC plans an organic capital expenditure of $20 billion in 2015, down from the previous guidance $24-26 billion. Total organic capital expenditu...

EPA suggests DOS reconsider Keystone XL climate impact conclusions

02/03/2015 The US Department of State might want to reconsider its conclusions regarding potential climate impacts from the proposed Keystone XL crude oil pip...

IHS sees second-half end of US output surge

02/03/2015

Expectations are moderating about growth of oil production in the US this year.

Anadarko reports 2014 loss, remains upbeat about Wattenberg

02/03/2015 Anadarko Petroleum Corp. announced a 2014 net loss of $1.75 billion, or $3.47/share diluted, including a net loss of $4.05 billion associated with ...

CNOOC cuts capital budget, starts production from Jinzhou 9-3

02/03/2015 CNOOC Ltd. is slashing its capital budget for 2015 by 26-35% to $11.25-12.86 billion compared with last year’s budget. Capital expenditures for exp...

Seven Group buys into Beach Energy

02/03/2015 Media group Seven Group Holdings, Perth, has bought 13.8% of Adelaide-based Beach Energy Ltd. through share purchases fuelling speculation of a pos...

Karve joins Cobalt for Cameia development

02/03/2015 Shashank V. Karve has joined Cobalt International Energy Inc. as executive vice-president in charge of development of deepwater Cameia oil field on...

MARKET WATCH: NYMEX crude oil stays positive on lower rig count

02/03/2015 Oil prices on the New York and London markets closed higher Feb. 2 on positive momentum generated by a falling US rig count, suggesting cuts in pro...
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


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


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

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