MARKET WATCH: NYMEX crude oil futures drop modestly awaiting inventory

Crude oil futures fell modestly on the New York market July 22 as traders and analysts awaited a weekly US government report on petroleum inventories and as participants across international oil markets awaited developments in the Russia-Ukraine conflict.

Russian-backed separatists in Ukraine are suspected to have shot down a Malaysia Airlines passenger jet. US and Ukraine intelligence officials suggest a missile hit the plane. The incident is under international investigation.

Malaysia Prime Minister Najib Razak said July 22 that Malaysia is studying what actions can be taken under international law in the crash of Malaysia Airlines Flight 17 in Ukraine.

Meanwhile, a team of international aviation safety experts waited early July 23 for access to the crash site. UK authorities said they have received the plane's black boxes for evaluation.

In the US, crude oil supplies have fallen for 4 consecutive weeks, which analysts attribute largely to refineries running at higher-than-usual capacity for this time of year.

The Energy Information Administration estimated commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, decreased by 4 million bbl for the week ended July 18 compared with the previous week.

At 371.1 million bbl, US crude oil inventories are in the upper half of the average range for this time of year, EIA said in its July 23 petroleum status report. Analysts surveyed by the Wall Street Journal had expected EIA to report that inventories fell by 2.5 million bbl. Separately, the American Petroleum Institute estimated crude oil stock fell 555,000 bbl.

US gasoline supply builds

Total motor gasoline inventories increased by 3.4 million bbl, which EIA described as being in the upper half of the average range. Both finished gasoline inventories and blending components inventories increased last week.

Distillate fuel inventories increased by 1.6 million bbl, and EIA called that level near the lower limit of the average range for this time of year. Propane-propylene inventories rose 2.2 million bbl and are near the upper limit of the average range.

US refinery inputs averaged 16.6 million b/d for the week ended July 18, which was 28,000 b/d fewer than the previous week’s average. Refineries operated at 93.8% of capacity last week.

Gasoline production increased, averaging about 9.4 million b/d. Distillate fuel production increased last week, averaging 5.2 million b/d. US crude oil imports averaged over 7.4 million b/d, down by 20,000 b/d from the previous week. Over the last 4 weeks, crude oil imports averaged over 7.3 million b/d, which EIA said was 4.2% below the same 4-week period last year.

Total motor gasoline imports, including both finished gasoline and gasoline blending components, last week averaged 625,000 b/d. Distillate fuel imports averaged 91,000 b/d for the week ended July 18.

Energy prices

The New York Mercantile Exchange August crude oil contract dropped 17¢ on July 22, closing at $104.42/bbl. The September contract declined 47¢ to $102.39/bbl.

The natural gas contract for August decreased 77¢ to a rounded $3.77/MMbtu. On the US cash market, gas at Henry Hub, La., was $3.80/MMbtu, down 4¢.

Heating oil for August delivery declined less than a penny to a rounded $2.85/gal. Reformulated gasoline stock for oxygenate blending for August delivery was down a penny to a rounded $2.88/gal.

The September ICE contract for Brent crude delivery dropped 35¢ to $107.33/bbl. The October contract also fell, dropping 46¢ to $107.62/bbl. The ICE gas oil contract for August gained $3 to $882.50/tonne.

The Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes for July 22 was $105.74/bbl, up 67¢.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

BG’s 2015 budget ‘significantly lower than 2014’

02/03/2015 BG Group plans capital expenditures on a cash basis of $6-7 billion in 2015, a range it says is “significantly lower than 2014” due to “a lower oil...

BP trims capital budget by $4-6 billion

02/03/2015 BP PLC plans an organic capital expenditure of $20 billion in 2015, down from the previous guidance $24-26 billion. Total organic capital expenditu...

EPA suggests DOS reconsider Keystone XL climate impact conclusions

02/03/2015 The US Department of State might want to reconsider its conclusions regarding potential climate impacts from the proposed Keystone XL crude oil pip...

IHS sees second-half end of US output surge

02/03/2015

Expectations are moderating about growth of oil production in the US this year.

Anadarko reports 2014 loss, remains upbeat about Wattenberg

02/03/2015 Anadarko Petroleum Corp. announced a 2014 net loss of $1.75 billion, or $3.47/share diluted, including a net loss of $4.05 billion associated with ...

CNOOC cuts capital budget, starts production from Jinzhou 9-3

02/03/2015 CNOOC Ltd. is slashing its capital budget for 2015 by 26-35% to $11.25-12.86 billion compared with last year’s budget. Capital expenditures for exp...

Seven Group buys into Beach Energy

02/03/2015 Media group Seven Group Holdings, Perth, has bought 13.8% of Adelaide-based Beach Energy Ltd. through share purchases fuelling speculation of a pos...

Karve joins Cobalt for Cameia development

02/03/2015 Shashank V. Karve has joined Cobalt International Energy Inc. as executive vice-president in charge of development of deepwater Cameia oil field on...

MARKET WATCH: NYMEX crude oil stays positive on lower rig count

02/03/2015 Oil prices on the New York and London markets closed higher Feb. 2 on positive momentum generated by a falling US rig count, suggesting cuts in pro...
White Papers

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

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When 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



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

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