MARKET WATCHGasoline, crude oil prices surge on inventory numbers, approaching hurricane

Crude oil and gasoline futures prices jumped sharply Thursday on the New York Mercantile Exchange following the release of lower than expected inventory numbers.

Sept. 10, 2004

2 min read

By OGJ editors
HOUSTON, Sept. 10 -- Crude oil and gasoline futures prices jumped sharply Thursday on the New York Mercantile Exchange following the release of lower than expected inventory numbers.

In addition, trading was described as jittery with only light volumes pending the approach of Hurricane Ivan.

The US Energy Information Administration said Thursday that in the week ended Sept. 3, US commercial crude inventories fell by 1.4 million bbl to 285.7 million bbl, the lowest level since Mar. 12. US gasoline stocks dropped by 2.5 million bbl to 204.1 million bbl (OGJ Online, Sept. 9).

The National Hurricane Center in Miami said Ivan was a Category 5 storm with winds of 160 mph on Thursday.
On Friday, the storm was ranked a strong Category 4 with winds of 145 mph as it headed for Jamaica.

Forecasts projected that Ivan will strike southwestern Floriday Monday. But if the storm were to veer farther west, it could threaten Gulf of Mexico oil and natural gas production.

World crude oil supply is expected to grow in the second half of 2004, the Indonesian national news agency Antara quoted Purnomo Yusgiantoro as saying. He is conference president of the Organization of Petroleum Exporting Countries.

Energy prices
The October contract for benchmark US sweet, light crudes rose by $1.84 to $44.61/bbl Thursday on NYMEX, while the November position gained $1.79 to $44.63/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up by $1.84 to $44.62/bbl.

Gasoline for October delivery soared by 4.37¢ to $1.2254/gal, and heating oil for the same month jumped by 6.68¢ to $1.2280/gal. The October natural gas contract gained by 2.7¢ to $4.66/Mcf on NYMEX.

In London, the October contract for North Sea Brent crude increased by $1.83 to $42.22/bbl on the International Petroleum Exchange. Gas oil for September delivery advanced by $16.75 to $394.25/tonne. The October natural gas contract dipped by 5¢ to the equivalent of $4.92/Mcf on IPE.

The average price for the OPEC basket of seven benchmark crudes climbed by 55¢ to $38.74/bbl Thursday.