MARKET WATCH: NYMEX, Brent oil prices jump after US inventory drops
Light, sweet crude oil prices for May delivery jumped $1.86 during Apr. 6 trading to close at $37.75/bbl after the weekly inventory report showed US crude oil supplies fell by an estimated 4.9 million bbl for the week ended Apr. 1 compared with the previous week.
Before the report was released, analysts surveyed by The Wall Street Journal had expected a 3.3 million-bbl rise (OGJ Online, Apr. 7, 2016).
The Energy Information Administration attributed the big inventory draw to a decline in imports and increased refinery activity for the week ended Apr. 1. US refinery inputs were 16.4 million b/d, up 199,000 b/d from the previous week’s average. Refineries operated at 91.4% of capacity.
Regarding production, EIA said US oil production fell to 9.008 million b/d for the week ended Apr. 1, down from 9.022 million b/d for the previous week.
Working gas in underground storage across the Lower 48 was estimated at 2.48 tcf as of Apr. 1, said EIA’s weekly Gas Storage Report, marking a net increase of 12 bcf from the previous week. Stocks were 1 tcf higher than last year at this time and 874 bcf above the 5-year average.
Energy prices
The May crude oil contract on the New York Mercantile Exchange climbed $1.86 to $37.75/bbl on Apr. 6, and the June contract rose $1.87, settling at $38.98/bbl.
The NYMEX natural gas contract for May was down 4¢ to $1.91/MMbtu. The Henry Hub price was down 5¢ to $1.86 on Apr. 6.
Heating oil for May delivery climbed nearly 7¢ to a rounded $1.14/gal. The price for reformulated gasoline stock for oxygenates blending for May was up nearly 2¢ to a rounded $1.40/gal.
The Brent crude contract for June on London’s ICE climbed $1.97 to $39.84/bbl. The July contract rose $1.97 to $40/bbl. The gas oil contract was $329/tonne, up $14.50.
The average price for the Organization of Petroleum Exporting Countries’ basket of 13 benchmark crudes on Apr. 6 was $33.93/bbl, up $1.22.
Contact Paula Dittrick at [email protected].
Paula Dittrick | Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.