US light, sweet crude oil prices for April delivery settled slightly above $49/bbl on the New York market Feb. 24 while market participants awaited the US government’s inventory report on oil and product supplies.
The Energy Information Administration estimated an 8.4-million bbl jump in commercial crude oil inventories for the week ended Feb. 20 compared with the previous week. The estimates exclude the Strategic Petroleum Reserve, the weekly petroleum status report said.
At 434.1 million bbl, US crude oil inventories remain at the highest level for this time of year in 80 years.
In other US news, US President Barack Obama vetoed legislation that would have authorized TransCanada Corp. to construct the Keystone XL pipeline to move crude oil from Canada (OGJ Online, Feb. 25, 2015).
Analysts said the market’s focus for US light, sweet crude prices was focused primarily on the inventory numbers, adding that traders appears disinterested in China’s latest manufacturing statistics, which showed an improvement.
A preliminary HSBC China Manufacturing PMI rose to 50.1 in February compared with a final reading of 49.7 in January. Analysts watch China’s manufacturing numbers for an indication of world oil demand.
US gasoline supply drops
Total motor gasoline inventories decreased 3.1 million bbl for the week ended Feb. 20, but EIA said gasoline levels are above the upper limit of the average range. Finished gasoline inventories increased while blending components inventories decreased last week.
Distillate fuel inventories decreased by 2.7 million bbl, which EIA called the lower half of the average range for this time of year. Propane-propylene inventories fell 2.2 million bbl last week but are well above the upper limit of the average range.
Refinery inputs averaged more than 15.2 million b/d during the week ended Feb. 20, which was 199,000 b/d less than the previous week’s average. Refineries operated at 87.4% of capacity last week.
Gasoline production increased last week, averaging about 9.7 million b/d. Distillate fuel production increased last week, averaging over 4.7 million b/d.
US crude oil imports averaged 7.3 million b/d last week, up by 174,000 b/d from the previous week. Over the last 4 weeks, crude oil imports averaged about 7.3 million b/d, 0.7% below the same 4-week period last year.
Total motor gasoline imports, including both finished gasoline and gasoline blending components, last week averaged 569,000 b/d. Distillate fuel imports averaged 353,000 b/d.
Energy prices
The New York Mercantile Exchange April crude oil contract was down 17¢ to $49.28/bbl Feb. 24 while the May contract declined 18¢ to $50.83/bbl.
The natural gas contract for March rose 2.3¢ to a rounded $2.90/MMbtu. The Henry Hub, La., gas price was $3.12/MMbtu, down 7¢.
Heating oil for March declined nearly 19¢ to a rounded $2.03/gal. Reformulated gasoline stock for oxygenate blending for March delivery dropped 2.6¢ to a rounded $1.62/gal.
The April ICE contract for Brent crude oil dropped 24¢, settling at $58.66/bbl. The May contract was down 21¢ to $59.44/bbl. The ICE gas oil contract for March lost 75¢ to $579.25/tonne.
The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes on Feb. 24 was $53.54/bbl, down 55¢.
Contact Paula Dittrick at [email protected].
*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.
