MARKET WATCH: Brent crude rises on latest Libyan unrest

Crude oil prices rose by more than $1/bbl on the London market on Nov. 13 amid reports of labor unrest in Libya while crude oil prices rose modestly on the New York market pending the release of the US government’s weekly inventory report, delayed a day because of the Nov. 11 Veterans Day holiday.

Libya’s oil industry has faced security concerns and labor unrest since civil war erupted there in 2011, triggering repeated worries about potential crude oil production disruptions.

On Nov. 13, the Associated Press reported Libyan protesters shut down a refinery in the eastern port city of Tobruk by blocking a road going to the facility. Protesters also reportedly blocked entrances to the offices of Arabian Gulf Oil Co., a branch of state-owned National Oil Corp.

AP reported the protests were triggered by Libya’s workers demanding jobs they claimed were promised for 1,000 people.

The US Energy Information Administration released a Short-Term Energy Outlook on Nov. 13, forecasting US fourth-quarter oil use will average 250,000 b/d above the same period last year to reach 18.7 million bbl in late-2013.

EIA forecast gasoline demand will rise 100,000 b/d from the same period for 2012 to reach a fourth-quarter average of 8.6 million b/d while distillate demand rises 190,000 b/d to 3.93 million b/d.

Inventory report

In the weekly inventory statistics released Nov. 14, EIA said US commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, increased by 2.6 million bbl for the week ended Nov. 8 compared with the previous week. The most recent tally was 388.1 million bbl, which is above the upper range for this time of year.

Total motor gasoline inventories decreased by 800,000 bbl and are near the top of the average range. Finished gasoline inventories increased while gasoline blending component inventories decreased. Distillate fuel inventories decreased by 500,000 bbl and remain near the lower limit of the average range for this time of year. Propane-propylene inventories fell 1.3 million bbl and are in the lower portion of the average range.

Refinery inputs averaged about 15.4 million b/d during the week ended Nov. 8, which was 343,000 b/d higher than the previous week’s average. Refineries operated at 88.7% capacity last week. Gasoline production rose from the previous week, averaging 9.4 million b/d. Distillate fuel production increased to 4.9 million b/d.

US crude oil imports averaged about 7.8 million b/d, up by 620,000 b/d from the previous week. Over the last 4 weeks, crude oil imports averaged 7.5 million b/d, 7.5% below the same 4-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) averaged 446,000 b/d while distillate fuel imports averaged 130,000 b/d.

Energy prices

The New York Mercantile Exchange December crude contract gained 84¢ on Nov. 13, settling at $93.88/bbl. The January 2014 contract climbed 97¢ to $94.49/bbl.

Heating oil for December delivery was up 4.45¢ to settle at a rounded $2.90/gal on NYMEX. Reformulated gasoline stock for oxygenate blending for December delivery rose 4.16¢ to a rounded $2.63/gal. The settlements for both heating oil and reformulated gasoline were the highest since Oct. 31.

The December natural gas contract on NYMEX was down 5.1¢ to settle at a rounded $3.57/MMbtu. On the US spot market, the gas price at Henry Hub, La., was a rounded $3.67/MMbtu, down 2.4¢.

In London, the December ICE contract for Brent crude oil gained $1.31 to settle at $107.12/bbl. The January 2014 contract climbed $1.35 to $106.89/bbl. The December contract for ICE gas oil was up $6.50 to $901.25/tonne. The November gas oil contract has expired.

The Organization of Petroleum Exporting Countries reported its basket of 12 benchmark crudes was $103.52/bbl on Nov. 13, down 8¢ from Nov. 12.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

Shell cuts $15 billion in spending for 2015-17

01/30/2015 Royal Dutch Shell PLC has curtailed more than $15 billion in potential spending over the next 3 years, but is not “not overreacting to current low ...

Victoria extends drilling, fracing ban

01/30/2015 The new Victorian Labor government of premier Daniel Andrews has extended the coal seam gas (CSG) exploration and hydraulic fracturing ban in the s...

Chevron’s $35 billion capital budget down 13% from last year

01/30/2015 Chevron Corp. will allocate $35 billion in its capital and exploratory investment program for 2015, including $4 billion of planned expenditures by...

US Senate passes bill approving Keystone XL pipeline project

01/30/2015 The US Senate has passed a bill approving construction of the proposed Keystone XL crude oil pipeline by a 62-36 vote after 3 weeks of debate. Nine...

Oxy cuts capital budget by a third

01/30/2015 In the midst of falling oil prices, Occidental Petroleum Corp., Houston, expects to reduce its total capital spending for 2015 to $5.8 billion from...

MARKET WATCH: NYMEX natural gas prices drop after storage report

01/30/2015 US natural gas closed at its lowest price in more than 2 years on the New York market Jan. 29 following the government’s weekly gas storage report,...

Pennsylvania governor reinstates state forest drilling moratorium

01/29/2015 Pennsylvania Gov. Tom Wolf (D) signed an executive order fully reinstating a 2010 moratorium on new oil and gas leases in state forests and parks. ...

PwC: Low oil prices might drive surge in restructuring in 2015

01/29/2015 Mergers and acquisitions (M&A) in the oil and gas industry hit 10-year highs in terms of deal value and volume in 2014, according to a report f...

DOE could meet 45-day LNG export decision deadline, Senate panel told

01/29/2015 The US Department of Energy would have no trouble meeting a 45-day deadline to reach a national interest determination for proposed LNG export faci...
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


Cognitive Solutions for Upstream Oil and Gas

When Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


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


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