MARKET WATCH: Oil prices end brief rally as dollar strengthens

Oil prices fell with front-month crude down 0.6% in the New York futures market May 21 as the US dollar rallied in expectation the Federal Reserve Bank would maintain current efforts to stimulate the national economy.

Indeed, Fed Chairman Ben Bernanke told Congress May 22 it is too soon to change policy with the job market still weak and unemployment still too high at 7.5%, despite moderate growth of the economy.

Energy stocks slipped, with the Oil Service Index and the SIG Oil Exploration & Production Index down 0.3% and 0.5%, respectively. Broader markets remained flat.

Oil prices continued declining in early trading May 22 with West Texas Intermediate dropping below $96/bbl and North Sea Brent “edging lower towards the $103/bbl level,” said Marc Ground at Standard New York Securities Inc., the Standard Bank Group. “As for the rest of the commodities,” he said, “oil markets are held captive by positioning and uncertainty” ahead of Bernanke’s afternoon testimony before the Congressional Joint Economic Committee.

US inventories

The Energy Information Administration said May 22 commercial US crude inventories declined 300,000 bbl to 394.6 million bbl in the week ended May 17, short of the Wall Street consensus for a 1 million bbl draw. Gasoline stocks jumped by 3 million bbl to 220.7 million bbl in the same period, compared with analysts’ expectations of a 300,000 bbl decrease. Both finished gasoline inventories and blending components increased. Distillate fuel inventories fell 1.1 million bbl to 118.8 million bbl, opposite the market outlook for a 1 million bbl build.

Imports of crude into the US escalated by 507,000 b/d to 8.1 million b/d last week. In the 4 weeks through May 17, US crude imports averaged 7.9 million b/d, down 932,000 b/d from the comparable period a year ago. Gasoline imports last week averaged 1.1 million b/d, while distillate fuel imports averaged 101,000 b/d.

The input of crude into US refineries decreased 4,000 b/d to 15.2 million b/d last week with units operating at 87.3% of capacity. Gasoline production increased above 9.2 million b/d; distillate fuel production increased to 4.8 million b/d.

Energy prices

The June contract for benchmark US light, sweet crudes dropped 55¢ to $96.16/bbl May 20 on the New York Mercantile Exchange. The July contract fell 75¢ to $96.18/bbl. On the US spot market, WTI at Cushing, Okla., was down 45¢, back in step with the front-month futures contract at $96.16/bbl at closing.

Heating oil for June delivery declined 2.18¢ to $2.93/gal on NYMEX. Reformulated stock for oxygenate blending for the same month decreased 5.98¢ to $2.85/gal.

The June natural gas contract continued climbing, up 10.2¢ to $4.19/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., regained 3.5¢ to $4.14/MMbtu.

In London, the July IPE contract for Brent lost 89¢ to $103.91/bbl. Gas oil for June fell $7.25 to $875.75/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes was down 56¢ to $101.39/bbl.

Contact Sam Fletcher at samf@ogjonline.com.

Related Articles

EPA approves Magellan’s Corpus Christi splitter project

12/12/2014 The US Environmental Protection Agency has issued a final greenhouse gas prevention of significant deterioration construction permit to Magellan Pr...

Keyera to take majority interest in Alberta gas plant

12/12/2014 Keyera Corp., Calgary, will pay $65 million (Can.) to buy a 70.79% ownership interest in the Ricinus deep-cut gas plant in west-central Alberta.

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...

TAEP: TPI still peaking, but ‘contraction unavoidable’ as oil prices fall

12/12/2014 The Texas Petro Index (TPI), a composite index based on a comprehensive group of upstream economic indicators released by the Texas Alliance of Ene...

MARKET WATCH: NYMEX crude oil price extends slump

12/12/2014 Crude oil prices extended their slump on the New York market with a Dec. 11 settlement of less than $60/bbl for January, and prices continued downw...

US needs more data before ending crude export ban, House panel told

12/11/2014 Much more environmental impact information is needed before the US can reasonably remove crude oil export limits, a witness told a House Energy and...

BOEM raises offshore oil spill liability limit to $134 million

12/11/2014 The US Bureau of Ocean Energy Management increased the liability limit for oil-spill related damages from offshore operations to $134 million from ...

Rosneft, Essar sign terms of oil supply agreement

12/11/2014 OAO Rosneft and Essar Energy PLC have signed key terms of an oil supply agreement in New Delhi. Rosneft said shipments to India may begin in 2015.

Barton introduces bill to remove US crude export limits

12/11/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

White Papers

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

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


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


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

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