MARKET WATCH: NYMEX oil prices jump on big crude inventory draw

Crude oil futures prices on the New York market settled Jan. 15 more than $1.50/bbl higher than the previous day after a weekly government report showed a larger-than-expected draw in US crude oil supplies.

The US Energy Information Administration reported oil inventories dropped 7.7 million bbl to 350.2 million bbl, which surprised analysts. A Wall Street Journal poll earlier in the week showed analysts expected a drop of 800,000 bbl.

The report for the week ended Jan. 10 marked the biggest one-week drop since the week ended Dec. 6, 2013.

The EIA’s weekly US underground gas storage report on Jan. 16 showed a significant withdrawal in gas supplies, but it was not as severe as some analysts had expected after a recent cold snap across much of the Midwest and some of the East Coast.

Working gas in storage was estimated at 2.53 tcf as of Jan. 10, which was a net decline of 287 bcf from the previous week. Stocks were 659 bcf lower than last year at this time and 443 bcf below the 5-year average of 2.97 tcf.

On international oil markets, Brent crude oil prices improved modestly upon a wire service news story out of China as well as a monthly supply report from the Organization of Petroleum Exporting Countries.

Analysts noted a Reuters news report that said China National Petroleum Corp.’s research institute believes China’s oil demand will increase 4% to 10.36 million b/d during 2014.

The estimate was larger than an earlier, separate report from the International Energy Agency, which forecast Chinese oil demand would increase 3.7% in 2014.

The OPEC supply report showed December oil production by the cartel’s members was slightly below expectations. OPEC’s estimated production dropped 20,000 b/d to 29.44 million b/d.

OPEC also estimated 2013 demand for OPEC crude at 29.9 million b/d, representing a decrease of 500,000 b/d from 2012. In 2014, demand for OPEC crude is forecast at 29.6 million b/d, a drop of 400,000 b/d from 2013, the report said.

Energy prices

The New York Mercantile Exchange February crude contract was up $1.58 on Jan. 15, closing at $94.17/bbl. The March contract gained $1.57 to settle at $94.35/bbl.

Heating oil for February delivery climbed 4.3¢ to a rounded $2.98/gal. Reformulated gasoline stock for oxygenate blending for February delivery edged up a fraction of a penny to rounded $2.63/gal.

The February natural gas contract on NYMEX dropped 4.4¢ to settle at a rounded $4.33/MMbtu. On the US spot market, the Jan. 15 gas price at Henry Hub climbed 7.9¢ to a rounded 4.43/MMbtu.

In London, the February ICE contract for Brent crude oil was up 74¢, closing at $107.13/bbl. The March Brent contract gained 67¢ to settle at $106.27/bbl. The ICE gas oil contract for February climbed $13.50 to $913.75/tonne.

The Organizational of Petroleum Exporting Countries reported its basket of 12 benchmark crudes was $104.35/bbl on Jan. 15, up 36¢.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

California lawmakers pass in-state gas system methane emissions bill

08/28/2014 The California Senate passed a bill aimed at curbing methane emissions from intrastate natural gas pipelines and local distribution systems. SB 137...

Fitch: Drilling downturn might prompt some consolidation

08/28/2014 A cyclical downturn in offshore drilling might provide an opportunity for driller contractors having financial flexibility to buy their peers at fa...

MARKET WATCH: NYMEX, Brent oil futures rise on Russia-Ukraine conflict

08/28/2014 Crude oil prices rose slightly on the New York and London markets Aug. 27 as international oil traders watched what appears to be an escalating con...

European refiner squeeze seen in W. African crude changes

08/27/2014 European refining is pivotal in “a second wave of structural changes” pummeling West African (WAF) crude oil prices in response to growing producti...

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