Sam Fletcher
Senior Writer
HOUSTON, Feb. 2 -- Energy futures prices fell Feb. 1 in a wave of profit-taking from the recent market run up and expectations that the Energy Information Administration for the third consecutive week would register a build in US crude inventories.
Instead, EIA said Feb. 2 that US crude stocks dipped by 300,000 bbl to 295.3 million bbl during the week ended Jan. 28. Distillate fuel inventories fell by 2.9 million bbl to 118.6 million bbl during the same period, while gasoline stocks increased by 1.6 million bbl to 216.3 million bbl.
US imports of crude declined by 572,000 b/d to 9.9 million b/d in that period. "It appears that imports from Saudi Arabia were relatively low last week, while imports from Venezuela were relatively high," said EIA.
Crude input into US refineries increased by 39,000 b/d to 15.2 million b/d during the week, with refineries operating at 91.6% of capacity. Distillate fuel production increased, averaging nearly 3.9 million b/d, but gasoline production decreased slightly to 8.5 million b/d, EIA said.
Energy prices
The March contract for benchmark US light, sweet crudes plunged by $1.08 to $47.12/bbl Feb. 1 on the New York Mercantile Exchange, wiping out gains from the previous session. The April contract lost 88¢ to $47.57/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was down by $1.08 to $47.13/bbl.
The new front-month March heating oil contract dropped 3.42¢ to $1.31/gal on NYMEX. Gasoline for March delivery was down by 3.31¢, also closing at $1.31/gal. Natural gas for the same month dipped by 0.5¢ to $6.316/MMbtu, "as moderate Northeast and Midwest weather this week was countered by cool Texas temperatures that helped firm the cash [gas spot] market," said analysts at Enerfax Daily. However, they said, "No one has any upside conviction because of ample volumes in storage, but anytime the market tries to move down, shorts [traders with excess open sales contracts] come in and take profits."
In London, the March contract for North Sea Brent crude fell by $1.10 to $44.82/bbl on the International Petroleum Exchange.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes gained 33¢ to $41.28/bbl on Feb. 1.
Contact Sam Fletcher at [email protected]
