Sam Fletcher
Senior Writer
HOUSTON, Nov. 9 -- Energy prices were mixed Nov. 8 as traders awaited signals whether markets are headed up or down.
On Nov. 9, the US Energy Information Administration reported commercial US crude inventories jumped by 4.5 million bbl to 326.6 million bbl during the week ended Nov. 4. Gasoline stocks escalated by 4.2 million bbl to 201.1 million bbl during the same period, but distillate fuels dipped by 100,000 bbl to 120.8 million bbl with a decline in heating oil more than compensating for an increase in diesel fuel.
Imports of crude into the US increased by 524,000 b/d to 10.6 million b/d in the latest week. The input of crude into US refineries gained 316,000 b/d to 14.3 million b/d. Refineries were operating at 84% of capacity, but production of both gasoline and distillates declined slightly, EIA reported.
The US Department of Energy said 804,000 b/d of refining capacity is still shut down along the Gulf Coast because of hurricane damage this summer.
A number of natural gas processing plants in Louisiana and Texas with an aggregate capacity of 7.66 bcfd are still not operational, DOE reported. Additional plants with a total capacity of 1.21 bcfd are operational but remain inactive because of upstream or downstream infrastructure problems or unavailable supplies. "A number of the inactive plants are expected to be operating within 4 weeks," said DOE officials.
The Louisiana Office of Conservation said production of 1.2 bcfd of natural gas has been restored onshore and in state waters of 38 southern parishes. That amounts to 53.7% of total prehurricane production from that area. Officials said 44.2% of the wells in the region are still shut in.
The US Minerals Management Service said Nov. 8 that 5 drilling rigs and 195 production platforms are still without crews in the Gulf of Mexico. Shut-in production totals 738,617 b/d of crude and 4.1 bcfd of natural gas. Total gulf production lost since Aug. 26 now stands at 81.3 million bbl of crude and 418.4 bcf of natural gas.
Energy prices
The December contract for benchmark US light, sweet crudes gained 24¢ to $59.71/bbl Nov. 8 on the New York Mercantile Exchange. The January contract increased by 20¢ to $60.73/bbl. Gasoline for December delivery inched up by 0.62¢ to $1.56/gal on NYMEX. However, heating oil for the same month lost 0.76¢ to $1.78/gal as warm weather continued through most of the US.
The December natural gas contract lost 8¢ to $11.79/MMbtu as traders took profits from the earlier rally in that market.
In London, the December contract for North Sea Brent crude dropped 23¢ to $57.81/bbl on the International Petroleum Exchange. Gas oil for November lost $5.50 to $518.50/tonne
The average price for the Organization of Petroleum Exporting Countries' basket of 11 benchmark crudes fell by 55¢ to $52.31/bbl on Nov. 8.
Contact Sam Fletcher at [email protected].
