MARKET WATCH: Brent crude oil futures down on lower IEA oil demand forecast

Oil prices settled about 70¢ lower on the New York market Aug. 12 while oil prices on the London market plunged more than $1 to their lowest level since early July 2013 following a report from the International Energy Agency, which lowered its oil demand forecast.

In its monthly oil market report, IEA lowered its 2014 global oil demand growth forecast to 1 million b/d on lower-than-expected second-quarter oil deliveries worldwide and a weaker economic outlook from the International Monetary Fund (OGJ Online, Aug. 12, 2014).

IEA forecast global oil demand growth will accelerate to 1.3 million b/d in 2015.

Reuters reported Aug. 13 that the first shipment of oil since 2013 has left Libya’s Ras Lanuf terminal. Analysts say a resumption of Libyan exports could increase global crude oil supplies.

Libya’s government and rebel forces agreed to reopen ports and oil fields that had been closed for almost a year (OGJ Online, July 8, 2014).

On Aug. 13, the US Energy Information Administration released its weekly petroleum inventory report for the week ended Aug. 8, saying US commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, increased by 1.4 million bbl from the previous week.

At 367 million bbl, US crude oil inventories are above the upper limit of the average range for this time of year, EIA said.

The American Petroleum Institute said its own calculations indicated the crude oil inventory rose 229,000 bbl for the week ended Aug. 8.

Gasoline inventories drop

Total motor gasoline inventories decreased 1.2 million bbl, which EIA described as being in the middle of the average range. Finished gasoline inventories increased while blending components inventories decreased last week.

Distillate fuel inventories decreased by 2.4 million bbl, and EIA said that level was below the lower limit of the average range for this time of year. Propane-propylene inventories rose 1.8 million bbl, which was above the upper limit of the average range.

US refinery inputs averaged over 16.2 million b/d for the week ended Aug. 8, which was 179,000 b/d less than the previous week’s average. Refineries operated at 91.6% of capacity last week. Gasoline production decreased last week, averaging over 9.5 million b/d. Distillate fuel production decreased, averaging over 4.7 million b/d.

US crude oil imports averaged over 7.8 million b/d, up 283,000 b/d. Over the last 4 weeks, crude oil imports averaged over 7.6 million b/d, 4.6% below the same 4-week period last year. Total motor gasoline imports, including both finished gasoline and gasoline blending components, averaged 470,000 b/d last week while distillate fuel imports averaged 151,000 b/d.

Energy prices

The New York Mercantile Exchange September crude oil contract fell 71¢ on Aug. 12, closing at $97.37/bbl. The October contract decreased 73¢ to $96.48/bbl.

The natural gas contract for September climbed less than a penny to remain at a rounded $3.97/MMbtu. On the US cash market, gas at Henry Hub, La., was $3.92/MMbtu, down 3¢.

Heating oil for September delivery dropped 3.4¢ to a rounded $2.85/gal. Reformulated gasoline stock for oxygenate blending for September delivery fell 1.8¢ to a rounded $2.73/gal.

The September ICE contract for Brent crude delivery plunged $1.66 to $103.02/bbl. The October contract fell $1.50 to $103.89/bbl. The ICE gas oil contract for September was down $12.75 to $884.75/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes was $101.66/bbl on Aug. 12, down 63¢.

Contract Paula Dittrick at paulad@ogjonline.com.

Related Articles

EIA: US gasoline prices to average $1/gal less in 2015 vs. 2014

02/10/2015 US regular gasoline retail prices are expected to average $2.33/gal in 2015, down from $3.36/gal in 2014, according to the Energy Information Admin...

MARKET WATCH: NYMEX oil prices rise on revised OPEC forecast

02/10/2015 Crude oil prices climbed more than $1/bbl on Feb. 9 to settle above $52/bbl, marking a third consecutive trading session that ended with higher pri...

MEO, Eni to exchange sections of Timor Sea permit

02/10/2015 MEO Australia Ltd., Melbourne, and Eni SPA—MEO’s joint-venture partner in the NT/P68 permit in the Timor Sea—have decided to split the permit betwe...

MRPL increases ownership in aromatics complex

02/10/2015 Mangalore Refinery & Petrochemicals Ltd. (MRPL), a subsidiary of Oil & Natural Gas Corp. Ltd. (ONGC), has increased its ownership interest ...

CNOOC signs two South China Sea PSCs with SK Innovation

02/10/2015 China National Offshore Oil Corp. Ltd. signed two production-sharing contracts with SK Innovation Co. Ltd., Seoul, for two blocks in the Pearl Rive...

Renewed uncertainty emerges over Greater Sunrise development

02/10/2015 There has been renewed uncertainty over the development of the Woodside Petroleum Ltd.-operated Greater Sunrise gas field in the Timor Sea followin...

Senators’ bill aims to curb flaring by expediting permit process

02/09/2015 North Dakota and Wyoming’s US senators introduced legislation that aims to capture methane and reduce flaring by expediting procedures for obtainin...

USW union workers add two BP refineries to strike list

02/09/2015 Union workers at two BP PLC-owned refineries in Indiana and Ohio have joined the United Steelworkers union’s (USW) unfair labor practice (ULP) stri...

Bendine elected as Petrobras’ chief executive officer

02/09/2015

The board of Petroleo Brasileiro SA (Petrobras) has approved the election of Alde Mir Bendine as the company’s chief executive officer.

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


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

When 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



On Demand

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


The Future of US Refining

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


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