Sam Fletcher
Senior Writer
HOUSTON, Feb. 15 -- Energy futures prices continued to fall Feb. 14 with the near-month crude contract slipping below $60/bbl in the New York market for the first time this year in anticipation of yet another build in US inventories.
On Feb. 15, the Energy Information Administration reported commercial US crude stocks climbed by 4.9 million bbl to 325.6 million bbl during the week ended Feb. 10, the highest level since June 24, 2005. Gasoline inventories rose by 2.2 million bbl to 225.5 million bbl last week, while distillate fuel stocks increased by 900,000 bbl to 136.9 million bbl with a gain in diesel fuel offsetting a decline in heating oil.
US imports of crude increased by 404,000 b/d to 10.3 million b/d during the same period. Crude input into US refineries was up by 84,000 b/d to 14.6 million b/d, with the system operating at 86.1% of capacity. Production of both gasoline and distillate fuel declined, however.
Energy prices
The March contract for benchmark US light, sweet crudes fell by $1.67 to $59.57/bbl Feb. 15 on the New York Mercantile Exchange. The April contract lost $1.28 to $61.03/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was down by $1.47 to $59.58/bbl. Gasoline for March delivery dropped 4.63¢ to a 9-month low of $1.38/gal for a front-month position on NYMEX. Heating oil for the same month slipped by 2.86¢ to $1.61/gal.
The March natural gas contact lost 12.9¢ to $7.02/MMbtu. Gas futures prices "have tumbled 18% in the past seven sessions," said analysts at Enerfax Daily. The reason for that decline, they said, is "well-above-average" storage levels of gas that are "more than adequate to handle all cold weather demand for the remainder of winter."
In London, the April contract for North Sea Brent crude lost $1.10 to $59.52/bbl on the International Petroleum Exchange. Gas oil for March fell by $10.50 to $513.25/tonne.
The average price for the Organization of Petroleum Exporting Countries' basket of 11 benchmark crudes fell by 62¢ to $55.30/bbl on Feb. 14.
Contact Sam Fletcher at [email protected].
