By OGJ editors
HOUSTON, Nov. 18 -- Energy futures prices shot up Wednesday, led by heating oil, after the Energy Information Administration reported US distillate stocks fell by 1 million bbl to 114.6 million bbl during the week ended Nov. 12.
US gasoline inventories were down by 400,000 bbl to 200.9 million bbl in the same period, while commercial inventories of crude increased by 800,000 bbl to 292.3 million bbl (OGJ Online, Nov. 17, 2004).
It marked the 9th consecutive week that distillate stocks, including heating oil, have declined as demand exceeded supply. Heating oil stocks are nearly 14% lower than last year in the US, which is the world's largest market. Demand for heating oil is already up by nearly 16% this year, with the start of the peak demand season this month, and this winter generally is expected to be colder than the last.
Meanwhile, the Nigerian Labor Congress earlier this week called off a scheduled general strike, which had threatened oil production in Nigeria, after the government announced a reduction in domestic prices for petroleum products.
Energy prices
Heating oil for December delivery shot up by 8.45¢ to$1.41/gal Wednesday on the New York Mercantile Exchange. Gasoline for the same month escalated by 3.4¢ to $1.26/gal. The December natural gas contract gained 15.9¢ to $7.28/Mcf, "with short-covering [of open sales contracts] and soaring heating oil prices driving the market higher, despite mild weather this week that pressured the [spot] cash market," said analysts Thursday at Enerfax Daily.
EIA early Thursday reported withdrawal of 6 bcf of natural gas from US underground storage during the week ended Nov. 12. That was less than the expected consensus of Wall Street analysts and compared with a "true" injection of 27 bcf the previous week and a withdrawal of 32 bcf during the same period a year ago. US gas storage now stands at a record 3.3 tcf, up by 166 bcf from last year and 275 bcf above the 5-year average.
The December contract for benchmark US crudes gained 73¢ to $46.84/bbl Wednesday on NYMEX. The January contract jumped by 92¢ to $47.12/bbl. On the US spot market, West Texas Intermediate increased by 73¢ to $46.85/bbl.
In London, the January contract for North Sea Brent crude increased by 47¢ to $42.76/bbl on the on the International Petroleum Exchange.
However, the average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes lost 45¢ to $35.49/bbl Wednesday.
