MARKET WATCH: NYMEX gasoline retreats from 2-year highs

Sept. 5, 2017
Light, sweet crude oil prices gained slightly on the New York market Sept. 1 as contracts for both October and November delivery closed above $47/bbl after some refineries discussed plans to restart operations following Hurricane and Tropical Storm Harvey.

Light, sweet crude oil prices gained slightly on the New York market Sept. 1 as contracts for both October and November delivery closed above $47/bbl after some refineries discussed plans to restart operations following Hurricane and Tropical Storm Harvey.

The US oil benchmark also gained in electronic trading on Sept. 4 while US markets were closed due to the Labor Day holiday although trading volumes were light, analysts said.

Meanwhile, some refineries are returning to business after Harvey made an initial landfall near Corpus Christi, Tex., on Aug. 25 as a Category 4 hurricane before being downgraded to a tropical storm that flooded much of Houston and East Texas.

Traders acknowledged the storm disrupted some crude production, but they said market participants were focused on refiners along the Gulf of Mexico coast that shut down or reduced operations.

“If refineries were now to resume operation more quickly than anticipated, as some reports suggest, this would doubtless put further pressure on gasoline prices while boosting the West Texas Intermediate price at the same time, “said Commerzbank analysts in a report.

The US Bureau of Safety and Environmental Enforcement on Sept. 4 issued what it called its final update of evacuation and shut-in production statistics for Tropical Storm Harvey.

“Oil and gas operators continue to assess their facilities and are required to submit damage reports to BSEE. To date, no damage reports have been received,” the agency said.

BSEE estimates about 5% of current oil production, or 121,484 b/d, remains shut in while about 8% of natural gas production, or 259.19 MMcfd, remains shut in based upon information received from the producers.

Energy prices

The October light, sweet crude contract on NYMEX climbed 6¢ on Sept. 1 to settle at $47.29/bbl while the November contract was up 3¢ to settle at $47.99/bbl.

The NYMEX natural gas price for October rose 3¢ to $3.07/MMbtu. The Henry Hub cash gas price was $2.90/MMbtu, up 1¢.

Heating oil for October rose nearly 5¢ to a rounded $1.75/gal. The New York Mercantile Exchange reformulated gasoline blendstock for October was down 3¢ to settle at a rounded $1.75/gal on Sept. 1.

The Brent crude contract for November on London’s ICE was down 11¢ to $52.75/bbl. The December contract decreased 5¢ to $52.79/bbl. The gas oil contract was $510.75/tonne on Sept. 1, up $6.

The Organization of Petroleum Exporting Countries’ basket of crudes for Sept. 1 was unavailable because OPEC’s offices were closed Sept. 5.

Contact Paula Dittrick at [email protected].