Paula Dittrick
Senior Staff Writer
HOUSTON, Apr. 23 -- Crude oil futures briefly surged to $119.90/bbl before settling lower on the New York Mercantile Exchange Apr. 22 on concerns of possible supply interruptions and the US dollar falling to another low against the euro.
Barclays Capital analysts in London said the global oil market continues to be concerned about oil supply implications of a planned 2-day strike, tentatively scheduled to start Apr. 27, at the 195,700-b/d Grangemouth refinery and petrochemical plant in Scotland.
Refinery workers are threatening to strike over changes to their pension plan (OGJ Online, Apr. 22, 2008).
Refinery owner Ineos Group said a 2-day strike could prompt a full refinery shutdown that would result in a plant closure for as long as a month because it takes a month for safe resumption of refinery operations, Barclays said on Apr. 23.
Ineos provides steam and power for the Kinneil terminal serving the Forties pipeline system, expected to export 619,000 b/d in May.
Pipeline operator BP PLC "has voiced concerns that a shutdown of Grangemouth could limit pipeline operations," Blayclays said. Reduced pipeline operations, in turn, could possibly force the shutting-in of some North Sea production.
Regarding natural gas, Barclays expects that resilient industrial demand for gas will accelerate gas demand growth from the power sector, boosting overall gas consumption in the US and Canada this year.
Energy prices
The NYMEX May contract for benchmark US sweet, light crudes hit an intraday record of $119.90/bbl before closing Apr. 22 at a record $119.37/bbl, up $1.89. The June contract gained $1.44 to $118.07/bbl. On the US spot market, WTI at Cushing, Okla., was up $1.90 to $119.38/bbl.
Heating oil for May closed at $3.316/gal on NYMEX, up less than 1¢ from the day before. The May contract for reformulated blend stock for oxygenate blending (RBOB) closed at $3.01/gal, up 3.7¢ for the day.
The May natural gas contract closed at $10.607/MMbtu, down 12.6¢ on NYMEX. On the US spot market, gas at Henry Hub, La., dropped 27¢ to $10.20/MMbtu.
In London, the June IPE contract for North Sea Brent crude settled at $115.95/bbl, up $1.52. The May gas oil contract closed at $1,068.50/tonne, up $11.50 for the day.
The average price for the Organization of Petroleum Exporting Countries' basket of 13 reference crudes advanced by 99¢ to $109.92/bbl on Apr. 22.
Contact Paula Dittrick at [email protected].
