MARKET WATCH: Oil prices rebound as geopolitical fears increase

Oil prices rebounded June 18 with front-month crude up 0.7% in the New York market as geopolitical fears pushed oil futures to a 9-month high, said analysts in the Houston office of Raymond James & Associates Inc.

Russian President Vladimir Putin blocked US President Barack Obama’s bid for support to bring down Syrian President Bashar al-Assad during a summit meeting of the Group of 8 (G8, representing the economies of Canada, France, Germany, Italy, Japan, Russia, the UK, and the US) in Northern Ireland. Putin claimed the US plan to supply weapons to rebels trying to oust Assad would escalate violence in that country and could be used for attacks in Europe. Russia provides arms to Assad.

Raymond James analysts reported, “Broader markets rallied on economic data, with the US consumer price index increasing less than expected and potentially enabling the Federal Reserve Bank to hold off on policy changes for a little longer. The Standard & Poor’s 500 Index gained 0.8%, with energy stocks advancing in lockstep [with the SIG Oil Exploration & Production Index up 0.8% and the Oil Service Index up 0.7%].”

US inventories

The Energy Information Administration said June 19 commercial inventories of US crude increased 300,000 bbl to 394.1 million bbl in the week ended June 14, opposite Wall Street’s consensus for a 500,000 bbl decline. Gasoline stocks gained 200,000 bbl to 221.7 million bbl in the same period, short of the 800,000 bbl increase analysts expected. Finished gasoline inventories decreased while blending components rose. Distillate fuel inventories were down 500,000 bbl to 121.6 million bbl, compared with market predictions of 900,000 bbl growth.

Imports of crude into the US increased 586,000 b/d to 8.4 million b/d last week. In the 4 weeks through June 14, US imports of crude averaged 7.8 million b/d, down 1.3 million b/d from the comparable period a year ago. Imports of gasoline averaged 556,000 b/d last week; distillate fuel imports averaged 87,000 b/d.

The input of crude into US refineries increased 294,000 b/d to 15.5 million b/d last week with units operating at 89.3% of capacity. However, gasoline production decreased to 9.1 million b/d while distillate fuel production declined to 4.7 million b/d.

Energy prices

The July contract for benchmark US light, sweet crudes rallied by 67¢ to $98.44/bbl June 18 on the New York Mercantile Exchange. The August contract climbed 64¢ to $98.67/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up 67¢ to $98.44/bbl.

Heating oil for July delivery recouped 1.14¢ to $2.94/gal on NYMEX. Reformulated stock for oxygenate blending for the same month recovered 2.33¢ to $2.88/gal.

The July natural gas contract continued rising, up 3¢ to $3.91/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., jumped 11.2¢, also closing at a rounded $3.91/MMbtu.

In London, the August IPE contract for North Sea Brent rebound 55¢ to $106.02/bbl. Gas oil for July dropped $1.25 to $892.75/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes lost 75¢ to $103.10/bbl.

Contact Sam Fletcher at samf@ogjonline.com.

Related Articles

Obama makes Alaska’s Bristol Bay off-limits for oil, gas activity

12/17/2014 US President Barack Obama placed Bristol Bay off-limits for future oil and gas leasing, extending a temporary withdrawal he imposed in 2010 that wa...

Severance tax would backfire, Pennsylvania association leaders warn

12/17/2014 Enacting a severance tax aimed at Pennsylvania’s unconventional natural gas activity would substantially harm the commonwealth beyond the industry ...

New York state moves to ban hydraulic fracturing

12/17/2014 High-volume hydraulic fracturing will be banned in the state of New York, Gov. Andrew Cuomo’s administration announced Dec. 17, citing health risks...

Cooper to buy 50% of offshore Gippsland Sole gas field

12/17/2014 Cooper Energy Ltd., Adelaide, has bought a 50% interest in the offshore Gippsland Sole dry gas field in retention lease Vic/RL3 as well as 50% of t...

MARKET WATCH: Oil prices held steady on NYMEX awaiting crude inventory

12/17/2014 Oil prices held fairly steady on the New York market in Dec. 16 trading while Brent crude oil prices fell by more than $1/bbl on the London market....

BPC report examines 40 possible options to reform RFS

12/16/2014 The Bipartisan Policy Center issued a report outlining 40 possible options for reforming the federal Renewable Fuels Standard in an effort to move ...

Turkish refinery secures Canadian financing

12/16/2014 Export Development Canada (EDC) said it is participating as lead arranger in the $3.3 billion debt-financing consortium supporting STAR Rafineri AS...

Encana to focus spending on four core shale assets in 2015

12/16/2014 Encana Corp., Calgary, reported plans to spend $2.7-2.9 billion on its capital budget with roughly 80% of this total directed towards four of what ...

Cenovus trims budget, slows oil sands work

12/16/2014 Cenovus Energy Inc., Calgary, is trimming its capital spending in response to declining crude oil prices and will slow development of some of its t...

White Papers

What is System Level Thermo-Fluid Analysis?

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

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

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

Available Webcasts



The Future of US Refining

When Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST



On Demand

Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


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


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