By OGJ editors
HOUSTON, May 20 -- Crude futures prices rebounded to within striking distance of a new record while gasoline hit another high Wednesday on the New York Mercantile Exchange, following reports of yet another decline in commercial US crude inventories and a lower-than-expected build in US gasoline stocks on the cusp of the start of the peak summer driving season.
The US Energy Information Administration reported that US crude fell by 1.1 million bbl to 298.9 million bbl during the week ended May 14, while US gasoline stocks increased by 1.2 million bbl to 203.7 million bbl during that same period (OGJ Online, May 19. 2004).
The June contract for benchmark US sweet, light crudes rebounded by 96¢ to close at $41.50/bbl NYMEX, after briefly touching in that session the previous day's record closure of $41.55/bbl. Meanwhile, the July contract increased by $1.10 to $41.52/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., gained 93¢ to $41.50/bbl.
Gasoline for June delivery jumped by 6.34¢ to a new high of $1.4503/gal Wednesday on NYMEX. Heating oil for the same month escalated by 3.5¢ to $1.0485/gal. The June natural gas contract shot up by 30.1¢ to $6.46/Mcf, "driven by a firmer crude oil market and warmer weather forecasts for Texas and the Southeast early next week despite a softer [spot natural gas] cash market," said analysts Thursday at Enerfax Daily.
EIA reported Thursday that 85 bcf of natural gas were injected into US underground storage during the week ended May 14. That was below the consensus of most Wall Street analysts and compares with injections of 76 bcf the previous week and 90 bcf during the same period a year ago. US gas storage now stands at nearly 1.4 tcf, up 398 bcf from year-ago levels but 15 bcf below the 5-year average for that period.
In London, the July contract for North Sea Brent crude gained 95¢ to $37.90/bbl Wednesday on the International Petroleum Exchange. Gas oil for June delivery gained $8.75 to $326.50/tonne. However, the June natural gas contract dipped by 0.73¢ to the equivalent of $3.78/Mcf on IPE.
The Vienna office of the Organization of Petroleum Exporting Countries was closed Wednesday for a holiday, so there was no report of the average price for the group's basket of benchmark crudes.