MARKET WATCH: Crude prices weaker ahead of oil data, Bernanke testimony

US Fed Chairman Ben Bernanke “surprised absolutely no one” with his testimony to the US Senate Banking Committee Feb. 26 defending the Fed’s $3.1 trillion balance sheet, reported analysts in the Houston office of Raymond James & Associates Inc. They said, “The illustrious chairman deflected concerns about the risks of Quantitative Easing and made it clear that he intends for the current $85 billion/month of bond purchases to continue for the foreseeable future.”

Marc Ground at Standard New York Securities Inc., the Standard Bank Group, reported, “After an initial surge after Bernanke’s testimony, oil markets moved lower again, weighed down by reports that Iran might be taking a more conciliatory approach to negotiations surrounding its nuclear enrichment plans.”

Ground said, “It appears as if Bernanke’s testimony yesterday eased some of the market’s fears over an early end to the Fed’s quantitative easing program that had been sparked by [Federal Open Market Committee] minutes released last week and at the beginning of the year. While Bernanke confirmed the Fed’s concern over the potential costs of its current asset purchases (as highlighted in recent FOMC minutes), he did stress that ‘we do not see the potential costs…as outweighing the benefits of promoting a stronger economic recovery.’”

US inventories

The Energy Information Administration said Feb. 27 commercial US crude inventories increased by 1.1 million bbl to 377.5 million bbl in the week ended Feb. 22, well below Wall Street’s consensus for a 2.5 million bbl gain. Gasoline stocks dropped 1.9 million bbl to 228.5 million bbl in the same period, outstripping analysts’ outlook for a 1 million decline. Finished gasoline inventories increased while blending components decreased. Distillate fuel inventories increased by 600,000 bbl to 124.2 million bbl, below market expectations of 1.6 million bbl loss.

Imports of crude into the US increased 269,000 b/d to 8 million b/d last week. In the 4 weeks through Feb. 22 imports averaged 7.7 million b/d, which was 1.2 million bbl less than in the comparable period in 2012. Gasoline imports last week averaged 575,000 b/d while distillate fuel imports averaged 156,000 b/d.

Input of crude into US refineries was up 335,000 b/d to 14.5 million b/d last week with units operating at 85.1% of capacity. Gasoline production increased to 9.2 million b/d as distillate fuel production increased to just under 4.5 million b/d.

Energy prices

The April and May contracts for benchmark US light, sweet crudes lost 48¢ each to $92.63/bbl and $93.05/bbl, respectively, Feb. 26 on the New York Mercantile Exchange. On the US spot market, West Texas Intermediate at Cushing, Okla., followed the April futures contract down 48¢ to $92.63/bbl.

Heating oil for March delivery was down 6.72¢ to $3.03/gal on NYMEX. Reformulated stock for oxygenate blending for the same month dropped 7.95¢ to $2.98/gal.

Weekend snowstorms across the Midwest kept the March natural gas contract climbing, up 1.3¢ to $3.43/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., gained 3.2¢ to $3.46/MMbtu.

In London, the April IPE contract for North Sea Brent decreased $1.73 to $112.71/bbl. Gas oil for March fell $22 to $956.75/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes lost $1.10 to $110.10/bbl.

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...

Buru awarded onshore Canning licenses

07/06/2015 Buru Energy Ltd., Perth, and Mitsubish Corp. have been granted two production licenses for Ungani oil field in the onshore Canning basin of Western...

Cenovus sells royalty business for $3.3 billion

07/06/2015 Cenovus Energy Inc., Calgary, inked an agreement to sell its wholly owned subsidiary Heritage Royalty LP to Ontario Teachers’ Pension Plan for gros...

CERI: Energy, operational efficiencies possible in Canadian oil, gas

07/06/2015 Measures can be taken by operators in the expanding resource-intensive Canadian oil and gas sector to improve both energy efficiency and operationa...
White Papers

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

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
Available Webcasts


Operating a Sustainable Oil & Gas Supply Chain in North America

When Wed, Oct 7, 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.

register:WEBCAST


The Resilient Oilfield in the Internet of Things World

When 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.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

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