Sam Fletcher
Senior Writer
HOUSTON, Feb. 25 -- Energy futures prices were mixed Tuesday, ahead of a government report Wednesday of a large drop in crude input at US refineries, especially on the Gulf Coast, during the week ended Feb. 20.
Gasoline for March delivery dipped by 0.33¢ to $1.0244/gal Tuesday on the New York Mercantile Exchange, despite claims by analysts that "the market's perception is that gasoline stocks remain dangerously low and may not be rebuilt quickly enough to meet demand during the summer season of peak gasoline demand." However, heating oil for the same month advanced by 0.46¢ to 88.97¢/gal.
Retail gasoline prices rise
"US retail gasoline prices are spiking upwards ferociously for no less than the third time within the past year," said Paul Horsnell, head of energy research, Barclays Capital Inc., London. "In the middle of last March, the average US price for regular gasoline peaked at $1.728/gal. In the last week of August, an all-time peak was set at $1.747/gal. Now we have a third peak forming, with the average currently standing at $1.688/gal, a rise of 4¢ over the past week."
In California, retail gasoline prices increased by 16¢/gal during the same period "and again for the third time within a year are now above $2/gal," Horsnell said. "It may get worse still. There are widespread reports, particularly in the Midwest, of wholesalers restricting sales in an attempt to conserve supplies."
Refining capacity down
Meanwhile, Shell Oil Co. temporarily curtailed processing at its 333,800 b/d refinery in Deer Park, Tex., following a fire Sunday in the sulfur-recovery system.
Marathon Ashland Petroleum LLC on Monday shut down for unplanned maintenance a platformer combined-feed heater, which produces high-octane blending components for making gasoline, at its 72,000 b/d Texas City, Tex., refinery.
Tesoro Petroleum Corp. in San Antonio earlier reported that its 161,000 b/d Golden Eagle refinery near San Francisco experienced a short-term power outage on Feb. 20. The company subsequently advanced maintenance on a hydrogen unit at the refinery, reducing throughput by 20,000 b/d.
US inventories
Crude inputs through US refineries averaged nearly 14.5 million b/d during the week ended Feb. 20, down 498,000 b/d from the previous week's average and wiping out the cumulative increase over the previous 2 weeks, the US Energy Information Administration said Wednesday. Most of that decrease was on the Gulf Coast, where refinery inputs averaged 6.5 million b/d—"the lowest weekly average since Oct. 11, 2002," EIA said.
Imports of crude into the US averaged 9 million b/d in the week ended Feb. 20, down by nearly 1.2 million b/d from the previous week. Most of that decline was on the Gulf and East Coasts, officials said. With both imports and refinery inputs of crude down significantly in that period, US commercial crude inventories were unchanged at 273.8 million bbl, EIA said. Distillate fuel stocks fell by 1.1 million bbl to 111.4 million bbl, while gasoline inventories dropped by 1.6 million bbl to 203.4 million bbl.
The American Petroleum Institute subsequently reported Wednesday that US crude stocks fell by 27,000 bbl to 274.5 million bbl during the week ended Feb. 20. Distillate inventories fell by 3.4 million bbl to 115.9 million bbl, it said, but gasoline stocks increased by 447,000 bbl to 202.6 million bbl.
Energy prices
The April contract for benchmark US light, sweet crudes gained 23¢ to $34.58/bbl Tuesday on NYMEX, while the May position retreated by 2¢ to $33.45/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., increased by 30¢ to $36.08/bbl.
The March natural gas contract lost 5¢ to $5.08/Mcf Tuesday on NYMEX.
In London, the April contract for North Sea Brent oil was unchanged Tuesday at $30.81/bbl on the International Petroleum Exchange. Gas oil for March delivery inched up by 25¢ to $259.50/tonne. However, the March natural gas contract dipped by 1.1¢ to the equivalent of $4.11/Mcf on IPE.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes gained 35¢ to $30.55/bbl Tuesday.
Contact Sam Fletcher at [email protected]
