MARKET WATCH: NYMEX gasoline, diesel futures prices climb on anticipated demand

Oil futures prices rose moderately Dec. 26 in trading on the New York market while gasoline and diesel prices reached levels not seen since September. Analysts said they expected the Dec. 27 release of a weekly government petroleum status report would show strong demand for petroleum products.

The US Energy Information Administration issued its weekly petroleum status report for the week ended Dec. 20, confirming an anticipated decrease in crude oil inventories. The report was released Dec. 27, which was 2 days later than normal because of the Christmas holiday.

Separately, the American Petroleum Institute earlier this week reported a surprise rise of 716,000 bbl in crude inventories for the week ended Dec. 20. API’s numbers showed the gasoline inventory was down 2.486 million bbl.

Regarding natural gas in underground storage, EIA estimated 3.07 tcf as of Dec. 20, which was a net decline of 177 bcf from the previous week. Stocks were 591 bcf less than last year at this time and 313 bcf below the 5-year average of 3.38 tcf.

The latest withdrawal statistics were more typical than the previous week’s report. For the week ended Dec. 13, EIA’s gas storage report estimated a 285 bcf decline, breaking a weekly record withdrawal set during January 2008 (OGJ Online, Dec. 19, 2013).

A series of positive economic indicators has brightened the outlook for US energy demand, particularly consumer spending on fuel, analysts say. That latest indicator came Dec. 26 when the US Department of Labor said initial jobless claims fell more than expected.

US oil stocks drop

EIA reported US commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, decreased by 4.7 million bbl for the week ended Dec. 20 compared with the week ended Dec. 13.

At 367.6 million bbl, crude oil inventories are near the upper limit of the average range for this time of year, EIA said. Total motor gasoline inventories decreased by 600,000 bbl last week, and are in the upper half of the average range.

Finished gasoline inventories increased while blending components inventories decreased last week. Distillate fuel inventories decreased by 1.9 million bbl last week and are below the lower limit of the average range for this time of year. Propane-propylene inventories fell 2.5 million bbl last week and are well below the lower limit of the average range, EIA said.

US refinery inputs averaged over 16.2 million b/d of crude oil during the week ended Dec. 20, marking inputs that were 302,000 b/d higher than the previous week’s average. Refineries operated at 92.7% of capacity last week. Gasoline production increased, averaging 9.7 million b/d, and distillate fuel production increased, averaging 5.1 million b/d.

US crude oil imports averaged over 7.5 million b/d, down by 197,000 b/d from the previous week. Over the last 4 weeks, crude oil imports averaged 7.5 million b/d, which EIA said was 9.7% below the same period last year. Total motor gasoline imports, including both finished gasoline and gasoline blending components, last week averaged 486,000 b/d. Distillate fuel imports averaged 175,000 b/d last week.

Energy prices

The New York Mercantile Exchange February crude contract climbed 33¢ on Dec. 26 to close at $99.55/bbl. The March contract rose 28¢ to settle at $99.62/bbl.

Heating oil for January delivery climbed a rounded 1.7¢, settling at a rounded $3.09/gal. Reformulated gasoline stock for oxygenate blending for January delivery was up 0.6¢ to a rounded $2.82/gal, which was the highest front-month RBOB settlement since Sept. 6. The January RBOB contract expires Dec. 31.

January diesel prices rose 1.65¢ to close Dec. 26 at $3.09/gal, which was the highest since Sept. 13.

The January natural gas contract on NYMEX climbed 1.7¢ to settle at a rounded $4.43/MMbtu. On the US spot market, the gas price at Henry Hub, La., dropped 3.7¢ to a rounded $4.40/MMbtu.

In London, the February ICE contract for Brent crude oil climbed 8¢, closing Dec. 26 at $111.98/bbl. The ICE gas oil contract for January was up $5.75 to settle at $950/tonne.

The price of the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes was unavailable because the OPEC Secretariat office was closed.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

FourPoint Energy to acquire Anadarko basin assets from Chesapeake

07/02/2015 FourPoint Energy LLC, a privately owned Denver company, plans to acquire oil and gas assets from Chesapeake Energy Corp. subsidiaries Chesapeake Ex...

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

MARKET WATCH: NYMEX oil prices plummet on crude inventory build, Iran deadline extension

07/02/2015 Oil prices plummeted more than $2/bbl July 1 to settle at a 2-month low on the New York market after a weekly government report showed the first ri...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...

MARKET WATCH: Oil prices decline as US crude inventories post first gain in 9 weeks

07/01/2015 Oil prices on July 1 surrendered much of their gains from the day before after the release of a government report showing the first rise in US crud...

FWS issues Shell letter of authorization on Chukchi Sea lease

07/01/2015 The US Fish & Wildlife Service issued Shell Gulf of Mexico Inc. a letter of authorization (LOA) related to the potential disturbance of polar b...
White Papers

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

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
Available Webcasts


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


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

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