MARKET WATCH: NYMEX oil prices rise on drop in US gasoline supplies

Light, sweet crude oil for March delivery on the New York market gained modestly on Jan. 31 pending release of the US government’s weekly inventory on oil and products, which showed an unexpected fall in gasoline supplies. The US oil benchmark gained in early Feb. 1 trading.

Light, sweet crude oil for March delivery on the New York market gained modestly on Jan. 31 pending release of the US government’s weekly inventory on oil and products, which showed an unexpected fall in gasoline supplies. The US oil benchmark gained in early Feb. 1 trading.

The US Energy Information Administration estimated total motor gasoline inventories decreased 2 million bbl for the week ended Jan. 26 compared with the previous week (OGJ Online, Jan. 31, 2017).

“Gasoline should be building at this time of year,” noted Paul Horsnell, Standard Chartered global head of commodities research. “The draw in gasoline that was what stands out,” he said of the Petroleum Status Report.

He and others attributed lower gasoline supply levels to strong US January gasoline demand.

EIA estimated commercial US crude oil inventories, excluding the Strategic Petroleum Reserve, increased 6.8 million bbl to 418.4 million bbl for the week ended Jan. 26 from the previous week.

As analysts had expected, weekly US crude oil production rose to 9.919 million b/d, up 41,000 b/d from the previous week. Shale production has risen on strengthening oil prices.

Energy prices

The March light, sweet crude contract on the New York Mercantile Exchange gained 23¢ on Jan. 31 to settle at $64.73/bbl. The April contract was up 21¢ to $64.56/bbl.

The NYMEX natural gas price for March settled at a rounded $3/MMbtu, down 20¢. The Henry Hub cash gas price fell 39¢ to $3.21/MMbtu.

Ultralow-sulfur diesel for February fell less than 1¢ to a rounded $2.07/gal. The NYMEX reformulated gasoline blendstock for February gained 1¢ to a rounded $1.91/gal.

Brent on London’s ICE for March gained 3¢ to $69.05/bbl. The April contract was up 37¢ to $68.99/bbl. The gas oil contract for February held unchanged at $611.50/tonne.

The Organization of Petroleum Exporting Countries’ basket of crudes was $66.28/bbl on Jan. 31, down 32¢.

Contact Paula Dittrick at paulad@ogjonline.com.

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