Sam Fletcher
Senior Writer
HOUSTON, Nov. 22 -- Crude prices rebounded above $60/bbl Nov. 21 on the New York market as strong winds halted tanker loadings in Valdez, Alas., and reduced the flow of crude through the Trans-Alaska Pipeline to 25% of normal capacity.
"High winds and large waves have disrupted shipments for the past week and led to a rise in the price of oil held in storage tanks," reported analysts in the Houston office of Raymond James & Associates Inc. "There is plenty of oil sitting at the terminus of the North Slope pipeline at the Port of Valdez, which has 7 million bbl of storage capacity. Two tankers are already docked there, and several others are waiting to pick up cargoes as well."
The National Weather Service expects conditions to improve by Nov. 23. Meanwhile, BP PLC has reduced its Prudhoe Bay crude production by 65-75%.
US inventories
The Energy Information Administration said Nov. 22 that US commercial inventories of crude jumped by 5.1 million bbl to 341.1 million bbl during the week ended Nov. 17. Gasoline stocks increased by 1.4 million bbl to 201.7 million bbl during the same period. Distillate fuel inventories fell by 1.2 million bbl to 133.8 million, with declines in heating oil and ultralow-sulfur diesel.
Imports of crude into the US grew by 1 million b/d to 10.5 million b/d in the same week. The input of crude into US refineries increased by 60,000 b/d to 15 million b/d, with refineries operating at 87.1% of capacity. Gasoline production inched up to 8.7 million b/d, while distillate fuel production increased to 4.1 million b/d.
EIA also reported the withdrawal of 1 bcf of natural gas from US underground storage in the same week, compared with a 5 bcf injection the previous week and a 9 bcf withdrawal during the same period last year. US gas storage now stands at 3.4 tcf, up by 174 bcf from year-ago levels and 240 bcf above the 5-year average.
Energy prices
The January contract for benchmark US light, sweet crudes gained $1.37 to $60.17/bbl Nov. 21 on the New York Mercantile Exchange. The February contract increased by $1.26 to $61.54/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up by $1.57 to $58.03/bbl. Unleaded gasoline for December delivery escalated by 7.84¢ to $1.63/gal. Heating oil for the same month was up by 6.23¢ to $1.73/gal.
The December natural gas contract, however, lost 3.1¢ to $7.99/MMbtu on NYMEX.
In London, the January IPE contract for North Sea Brent crude increased by $1.41 to $60.39/bbl. Gas oil for December gained $14 to $537.50/tonne.
The average price for the Organization of Petroleum Exporting Countries' basket of 11 benchmark crudes advanced by 87¢ to $54.90/bbl on Nov. 21.
Contact Sam Fletcher at [email protected].
