Crude oil prices gained modestly Feb. 14 on the New York and London markets upon assurances that the Organization of Petroleum Exporting Countries largely is complying with production cuts. Light, sweet crude prices fell on the New York market Feb. 15 awaiting the weekly US oil and products inventory.
Oil oversupply concerns linger because of growing US oil production. The American Petroleum Institute estimated on Feb. 14 that US crude oil supplies increase by 9.9 million bbl for the week ended Feb. 10.
Separately, the US Energy Information Administration was scheduled to release its inventory estimate on Feb. 15.
EIA earlier this week issued its Drilling Productivity Report forecasting crude oil production from seven major US onshore producing regions will climb about 80,000 b/d in March compared with February to 4.873 million b/d (OGJ Online, Feb. 13, 2017).
OPEC and some non-OPEC producers agreed to cut their cumulative production by 1.8 million b/d. Those cuts started in January.
OPEC on Feb. 13 said cartel production fell by 890,000 b/d in January compared with December. Secondary sources estimated OPEC production in January averaged 32.139 million b/d compared with 33.029 million b/d in December (OGJ Online, Feb. 13, 2017).
Energy prices
The crude oil contract for March delivery on the New York Mercantile Exchange gained 27¢ on Feb. 14 to $53.20/bbl. The April contract was up 28¢ to $53.71/bbl.
US natural gas futures for March delivery fell nearly 4¢ to a rounded $2.90/MMbtu. The spot gas price at the Henry Hub in Cushing, Okla., declined 5¢ to $2.86/MMbtu.
Heating oil for March rose 1¢ to a rounded $1.64/gal. Reformulated gasoline stock for oxygenate blending for March edged up less than a penny to a rounded $1.55/gal.
The Brent crude contract for April on London’s ICE was up 38¢ to $55.97/bbl. The Brent May contract was up 33¢ to $56.29/bbl. Gas oil for March closed at $497.25/tonne, up $6.25.
The average price for OPEC’s basket of benchmark crudes on Feb. 14 was $53.31/bbl, down 16¢.
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.