MARKET WATCH: NYMEX crude oil prices rise awaiting inventory report

Crude oil prices rose modestly on the New York market Nov. 19 while traders and analysts awaited a US government inventory report, which showed a ninth consecutive weekly climb in crude oil inventories, as expected.

The US Energy Information Administration reported Nov. 20 crude stockpiles rose 400,000 bbl to 388.5 million bbl for the week ended Nov. 15. Separately, the American Petroleum Institute’s own weekly statistics showed US crude stocks grew 512,000 bbl to 383.3 million bbl.

Meanwhile, US Federal Reserve Chairman Ben Bernanke told the National Economists Club in Washington, DC, on Nov. 20 that he expects the Fed’s economic-stimulus policy will remain intact for an extended period. Following his comment, the US dollar weakened against other currencies, which subsequently supported dollar-based oil futures. Bernanke’s term ends Jan. 31, 2014.

Regarding world oil prices, Capital Economics, a London research firm, forecast Brent oil could dip to $90/bbl by Dec. 31, 2014, and possibly decline to $70/bbl by 2020 given easing tensions in the Middle East and rising crude supplies.

US crude supplies increase

EIA said US commercial crude oil inventories of 388.5 million bbl, excluding those in the Strategic Petroleum Reserve, were well above the upper limit of the average range for this time of year.

Total motor gasoline inventories decreased 300,000 bbl, putting supplies near the upper limit of the average range. Finished gasoline inventories increased, and blending components inventories decreased.

Distillate fuel inventories decreased 4.8 million bbl and are near the lower limit of the average range for this time of year. Propane-propylene inventories fell 2.4 million bbl, which is below the lower limit of the average range.

US refinery inputs averaged over 15.4 million b/d during the week ended Nov. 15, which was 36,000 b/d higher than the previous week’s average. Refineries operated at 88.6% of capacity. Gasoline production decreased last week, averaging 9.3 million b/d. Distillate fuel production decreased, averaging 4.9 million b/d.

Crude oil imports averaged about 7.9 million b/d, up 19,000 b/d from the previous week. Over the last 4 weeks, crude oil imports averaged 7.6 million b/d, 3.7% below the same 4-week period last year. Total motor gasoline imports, including finished gasoline and gasoline blending components, averaged 451,000 b/d for the week ended Nov. 15. Distillate fuel imports averaged 97,000 b/d.

Energy prices

The New York Mercantile Exchange December crude contract rose 31¢ on Nov. 19 to settle at $93.34/bbl. Trading was light for the December contract, scheduled to expire Nov. 20. The January 2014 contract increased 21¢, settling at $93.89/bbl on Nov. 19.

Heating oil for December delivery was down a rounded 1.6¢ to settle at $2.91/gal on NYMEX. Reformulated gasoline stock for oxygenate blending for December delivery decreased 1.73¢ to a rounded $2.64/gal.

The December natural gas contract on NYMEX dropped 6¢ to settle at a rounded $3.56/MMbtu. On the US spot market, the gas price at Henry Hub, La., was a rounded $3.63/MMbtu, a 6¢ decrease.

Natural gas prices have gone both directions this week on strong inventories and uncertain weather forecasts. Commodity Weather Group said the “strongest cold push of the season so far” is expected in the US Midwest, South, and East starting Nov. 23-24 and going into early next week.

Forecasts going into December remain uncertain, Commodity Weather Group said.

In London, the January ICE contract for Brent crude oil fell $1.55, settling at $106.92/bbl. The December contract for ICE gas oil gained 50¢ to $910.75/tonne.

The Organization of Petroleum Exporting Countries reported its basket of 12 benchmark crudes was $105.02/bbl on Nov. 19, down 2¢.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

Statoil reduces capital budget by $2 billion following 4Q losses

02/06/2015 Statoil ASA has reduced its organic capital expenditure to $18 billion in 2015 from $20 billion in 2014. The move comes on the heels of a fourth qu...

Chinese regulators approve Sinopec’s plan for grassroots refinery

02/06/2015 China’s National Development and Reform Commission (NDRC) has approved Sinopec Beijing Yanshan Petrochemical Co. Ltd., a subsidiary of China Nation...

BOEM schedules public meetings about draft proposed 5-year OCS plan

02/06/2015 The US Bureau of Ocean Energy Management will hold the first of 20 public meetings in Washington on Feb. 9 to receive public comments on potential ...

Union strike ongoing at US refineries as negotiations continue

02/06/2015 A strike by union workers at nine US refining and petrochemical production plants remains under way as the United Steelworkers Union (USW) continue...

NCOC lets $1.8-billion pipeline contract for Kashagan field

02/06/2015 North Caspian Operating Co. (NCOC) has let a $1.8-billion engineering and construction contract to ERSAI Caspian Contractor LLC, a subsidiary of Sa...

AOPL releases 2015 safety performance and strategic planning report

02/06/2015 The Association of Oil Pipe Lines is committed to further improvements despite a 99.99% safe petroleum liquids delivery rate, AOPL Pres. and Chief ...

MARKET WATCH: NYMEX oil price bounces back up somewhat

02/06/2015 Crude oil prices on the New York market bounced up $2/bbl to settle slightly above $50/bbl Feb. 5. The positive momentum continued during early Jan...

Congressional Republicans renew bid to halt sue-and-settle maneuvers

02/05/2015 Calling it an affront to regulatory accountability that results in unchecked compliance burdens, US Sen. Charles E. Grassley (R-Iowa) and US Rep. D...

Oil-price collapse may aggravate producing nations’ other problems

02/05/2015 The recent global crude-oil price plunge could be aggravating underlying problems in Mexico, Colombia, and other Western Hemisphere producing natio...
White Papers

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...

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
Available Webcasts

On Demand

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


The Future of US Refining

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


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


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