MARKET WATCH: NYMEX oil prices climb above $103/bbl, natural gas soars

Natural gas prices soared on the New York market Feb. 19 while crude oil prices also climbed upon forecasts for more cold temperatures, which continue driving strong demand for natural gas and heating oil for heating. Natural gas and distillate inventories have declined this winter.

The US Energy Information Administration said commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, increased by 1 million bbl for the week ended Feb. 14 compared with the previous week.

At 362.3 million barrels, US crude oil inventories are in the upper half of the average range for this time of year, EIA said.

Separately, the American Petroleum Institute said its own survey indicated a decline of 473,000 bbl in crude supplies for the week ended Feb. 14.

For underground gas storage, EIA estimated 1.443 tcf as of Feb. 14, a net decline of 250 bcf from the previous week. Stocks were 975 bcf less than for the same period last year and 741 bcf below the 5-year average of 2.184 tcf.

The 250 bcf draw for the week ended Feb. 14 compared with a draw of 127 bcf for the same period a year ago, EIA said.

US working natural gas storage inventories are expected to end March near 10-year lows but reach 3.64 tcf by Nov. 1, according to Platts oil and natural gas analytics unit Bentek Energy. In a Feb. 19 market alert, Bentek reported record demand and record storage reduction following the recent polar vortex.

The supply-demand balance considerably during December 2013 and January. However, Bentek expects robust gas production will more than make up for the gap within months.

Distillate inventories drop

US distillate fuel inventories decreased by 300,000 bbl for the week ended Feb. 14, which EIA said was well below the lower limit of the average range for this time of year. Propane-propylene inventories fell 1.2 million bbl and are below the lower limit of the average range.

Total motor gasoline inventories increased by 300,000 barrels last week, and are well above the upper limit of the average range.

US refinery inputs averaged 15.2 million b/d during the week ended Feb. 14, which was 37,000 b/d less than the previous week’s average. Refineries operated at 86.8% of capacity.

Gasoline production decreased, averaging 8.8 million b/d for the week ended Feb. 14. Distillate fuel production also decreased, averaging over 4.5 million b/d, EIA said.

US crude oil imports averaged over 7.4 million b/d last week, down by 508,000 b/d from the previous week. Over 4 weeks, crude oil imports averaged 7.6 million b/d, 1.8% below the same 4-week period last year. Total motor gasoline imports, including both finished gasoline and gasoline blending components, averaged 410,000 b/d. Distillate fuel imports averaged 329,000 b/d last week.

Energy prices

The New York Mercantile Exchange March crude contract rose 88¢ to settle at $103.31/bbl, marking a record high for 2014. The April contract was $102.84/bbl, up 74¢ for the Feb. 19 closing.

Heating oil for March delivery was up 4.51¢ to a rounded $3.15/gal. Reformulated gasoline stock for oxygenate blending for March delivery decreased 0.76¢ to a rounded $2.82/gal.

The March natural gas contract on NYMEX escalated 59.8¢ to a rounded $6.15/MMbtu. On the US spot market, the gas price at Henry Hub climbed to a rounded $5.97/MMbtu on Feb. 18, up 17.5¢ from Feb. 18.

In London, the April ICE contract for Brent edged up 1¢ to $110.47/bbl. The May contract was up 2¢ to close at $110.13/bbl. The ICE gas oil contract for March climbed $7.50 to $940.50/tonne.

The Organizational of Petroleum Exporting Countries reported its basket of 12 benchmark crudes was $107.15/bbl on Feb. 19, up 62¢.

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

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

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When 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


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

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

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


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