MARKET WATCH: NYMEX March crude oil rebounds to top $100/bbl

Crude oil futures prices on the New York Mercantile Exchange topped $100/bbl on Feb. 12 after a weekly US government inventory report showed a reduction in oil volumes stored in Oklahoma, and analysts attributed the draw to the recent opening of a pipeline.

Stockpiles at Cushing fell to a 3-month low as of Feb. 7, the US Energy Information Administration said in a report showing a 2.7-million bbl draw at the hub to 37.6 million bbl. Analysts said that weekly decline marked the largest drop since July 2013 (OGJ Online, Feb. 12, 2014).

TransCanada Corp. in January started operating a pipeline that transports crude oil from Cushing to the Gulf of Mexico coast (OGJ Online, Jan. 22, 2014). Analysts said oil storage levels at Cushing have kept benchmark US light sweet oil prices below Brent oil prices for years.

NYMEX light sweet crude closed Jan. 12 at a discount of $8.42/bbl to Brent, and the gap has narrowed from $15/bbl in early January.

Brent crude oil prices rose modestly on Feb. 12 after China reported record crude oil imports. Barclays analyst Sijin Cheng said new refining capacity drove China’s oil imports.

“Crude imports broke higher to a new record of 6.65 million b/d in January, up 5% month on month and 12% year on year,” Cheng said. “Aside from seasonal stockpiling ahead of the Chinese New Year, the January startup of two new refineries in Sichuan and Fujian likely kept imports high. An imminent startup of a new strategic petroleum reserve site in Huangdao, designed to hold 18.9 million bbl, may have been a factor as well.”

Regarding the US natural gas inventory, the EIA estimated working gas in underground storage was 1.686 tcf as of Feb. 7.

That represented a net decline of 237 bcf from the previous week. Stocks were 863 bcf less than last year at this time and 631 bcf below the 5-year average of 2.317 tcf, EIA said in its weekly gas storage report on Feb. 13.

Energy prices

Light, sweet crude for March delivery on the New York Mercantile Exchange climbed 43¢ to close at $100.37/bbl on Feb. 13. The contract briefly reached a high of $101.38/bbl before closing lower for the day. The April contract closed at $99.92/bbl, up 48¢.

Heating oil for March delivery declined 1.56¢ to a rounded $3.01/gal. Reformulated gasoline stock for oxygenate blending for March delivery climbed 1.05¢ to a rounded $2.76/gal, which was reformulated gasoline’s highest price since Dec. 31.

The March natural gas contract on NYMEX dropped less than a penny to remain at a rounded $4.82/MMbtu. On the US spot market, the gas price at Henry Hub dove by $1.35 to a rounded $6.27/MMbtu.

In London, the March ICE contract for Brent crude delivery increased 11¢, closing at $108.79/bbl. The April ICE contract for Brent was up 17¢ to $108.35/bbl.

The ICE gas oil contract for February held steady at $921.50/tonne, and the March contract also head steady at $919.50/tonne.

The Organization of Petroleum Exporting Countries reported its basket of 12 benchmark crudes was $105.46/bbl on Feb. 12, up 16¢.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

Southwestern agrees to second Marcellus acquisition this month

12/23/2014

Southwestern Energy Co., Houston, has agreed to acquire 20% of the Marcellus shale assets belonging to Statoil ASA for $394 million.

Vietnam, Japan sign MOU for grassroots Vietnamese refinery

12/23/2014 State-run Vietnam National Petroleum Corp. (Petrolimex) and JX Nippon Oil & Energy Corp., a subsidiary of JX Holdings Inc., have signed a memor...

Sasol secures financing for Louisiana petrochemical complex

12/23/2014 Sasol Ltd. has completed a $4 billion credit facility for its proposed integrated ethane cracker and downstream derivatives complex to built adjace...

NYMEX’s January contract expires with a daily gain

12/22/2014 Light, sweet crude oil prices gained more than $2/bbl on the New York market Dec. 19 as the January contract expired and upon a wire service report...

Regulators approve Unipetrol’s purchase of Czech refinery

12/22/2014 Unipetrol AS’s plan to acquire soon-to-be former partner Eni SPA’s interest in Ceska Rafinerska AS (CRC) to become the plant’s sole owner would not...

EPA delays proposal to regulate methane emissions until 2015

12/19/2014 The US Environmental Protection Agency is delaying plans to issue proposals to regulate methane emissions from oil and gas operations until 2015, O...

BLM starts process to consider new Nevada lease nominations

12/19/2014 The US Bureau of Land Management’s Battle Mountain, Nev., field office is seeking public comment on 197 parcels of public land, totaling 415,921 ac...

California Bay Area advances plan for enhanced refinery regulations

12/19/2014 California’s Bay Area Air Quality Management District (BAAQMD), the public agency responsible for regulating stationary sources of air pollution in...

IEA finds US energy policy improved in latest in-depth review

12/19/2014 US energy policies have come into sharper focus in the last six years, the International Energy Agency said in its latest periodic review. It speci...

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


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

When 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



On Demand

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