MARKET WATCH: NYMEX oil prices drop awaiting inventory report

Crude oil futures prices declined modestly on the New York market May 20 in anticipation of a weekly government report that unexpectedly showed a significant drop in US oil inventories, which analysts attributed to increased refinery runs and reduced crude oil imports.

The Energy Information Administration on May 21 reported commercial crude oil inventories, excluding the Strategic Petroleum Reserve, decreased 7.2 million bbl for the week ended May 16 compared with May 9.

Before the weekly report was released, analysts surveyed by the Wall Street Journal had expected oil inventories would jump 700,000 bbl. The American Petroleum Institute said its own survey showed the inventory dropped 10.3 million bbl for the week ended May 16.

EIA said its latest estimated inventory puts stocks at 391.3 million bbl, which the agency described as being near the upper limit of the average range for this time of year.

International oil market observers closely watched the news from Libya where an election commission scheduled a parliamentary vote for June as Libya’s lawmakers seek a peaceful resolution to violent disputes among rival militias.

Product inventories climb

Total motor gasoline inventories increased 1 million bbl for the week ended May 16, which EIA called the middle of the average range. Both finished gasoline inventories and blending components inventories increased last week.

Distillate fuel inventories rose 3.4 million bbl, which is below the lower limit of the average range for this time of year, EIA said. Propane-propylene inventories increased 2.2 million bbl and are in the middle of the average range.

US crude oil refinery inputs averaged more than 15.9 million b/d during the week ended May 16, which EIA said was 282,000 b/d more than the previous week’s average. Refineries operated at 88.7% of capacity.

Gasoline production decreased, averaging 9.6 million b/d and distillate fuel production increased, averaging 5 million b/d.

US crude oil imports averaged 6.5 million b/d for the week ended May 16, down 658,000 b/d from the previous week. Over the last 4 weeks, crude oil imports averaged 7 million b/d, 11.3% below the same 4-week period last year.

Total motor gasoline imports, including both finished gasoline and gasoline blending components, last week averaged 997,000 b/d while distillate fuel imports averaged 176,000 b/d.

Energy prices

The New York Mercantile Exchange June crude oil contract price declined 17¢ on May 20, closing at $102.44/bbl. The July contract rose 22¢ to $102.33/bbl.

The June natural gas contract was up 8.2¢ to a rounded $4.55/MMbtu.

Heating oil for June delivery gained less than a penny to a rounded $2.95/gal. Reformulated gasoline stock for oxygenate blending for June delivery edged down by less than a penny to remain at a rounded $2.96/gal.

In London, the July ICE contract for Brent crude delivery was up 32¢, closing at $109.69/bbl. The August contract increased 32¢ to settle at $108.91/bbl. The ICE gas oil contract for June gave up $3 to $909.25/tonne.

The Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes on May 19 was $106.18/bbl, down 25¢.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

Senate passes Defense bill with BLM drilling permit program provision

12/15/2014 The US Senate approved a Department of Defense appropriations bill on Dec. 13 containing a provision extending and making permanent a drilling perm...

Cook to head DONG Energy E&P group

12/15/2014 David B. Cook has been named group executive vice-president and chief executive officer for exploration and production at DONG Energy, Fredericia, ...

Sunshine Oilsands appoints chief executive officer

12/15/2014

Sunshine Oilsands Ltd., Calgary, has appointed Luo Hong as chief executive officer and Jiang Qi as president and chief operating officer.

Woodside to buy Apache’s interests in Wheatstone, Kitimat LNG for $2.75 billion

12/15/2014 Woodside Petroleum Ltd. has agreed to acquire interest in the Wheatstone LNG and Kitimat LNG projects, respectively in Western Australia and Britis...

MARKET WATCH: OPEC basket price closes below $59/bbl

12/15/2014 The average crude oil basket price for the 12 members of the Organization of Petroleum Exporting Counties closed below $59/bbl on Dec. 12 while cru...

EPA approves Magellan’s Corpus Christi splitter project

12/12/2014 The US Environmental Protection Agency has issued a final greenhouse gas prevention of significant deterioration construction permit to Magellan Pr...

Keyera to take majority interest in Alberta gas plant

12/12/2014 Keyera Corp., Calgary, will pay $65 million (Can.) to buy a 70.79% ownership interest in the Ricinus deep-cut gas plant in west-central Alberta.

PBF Energy, PBF Logistics make management changes

12/12/2014 Matthew Lucey, currently executive vice-president of PBF Energy Inc., will succeed Michael Gayda as the company’s president. Todd O’Malley, current...

TAEP: TPI still peaking, but ‘contraction unavoidable’ as oil prices fall

12/12/2014 The Texas Petro Index (TPI), a composite index based on a comprehensive group of upstream economic indicators released by the Texas Alliance of Ene...

White Papers

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

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


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


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

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