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Petroleum industry

Bullish Inventory Data Boosts Crude and Gasoline Prices on Nymex

Strategic Insights

— 1 min read

A resurgence in crude and gasoline prices on the New York Mercantile Exchange (Nymex) was triggered by bullish inventory data on Wednesday, following several days of indecisive trading. The July crude contract settled at $19.13 per barrel, a 7-cent gain, while the July gasoline contract rose 0.38 cents to 61.77 cents per gallon. Despite offsetting factors such as increased imports and trans-Atlantic arbitrage remaining closed, traders expect domestic supply to become more significant as foreign crude stays in place, raising concerns about availability.

Key Takeaways:

  • The July crude contract on Nymex settled up 7 cents at $19.13/bbl, partly driven by bullish inventory data.
  • Gasoline prices led the energy sector, with the July gasoline contract on Nymex settling up 0.38 cents at 61.77 cents/gallon.
  • Alan H. Levine, a Bethesda, Md.-based analyst with Smith Barney Inc., predicted that July gasoline prices may still rally to 65-66 cents/gallon but will struggle to do so.
  • Lower reformulated gasoline (RFG) output last week contributed to the overall decrease in gasoline output, with RFG production in the Gulf Coast falling for the second consecutive week.
  • Summer driving demand took its toll on East Coast RFG inventories, leading to increased cash prices at New York Harbor.
  • Cash prices for RFG in the Gulf Coast strengthened, trading 0.90-1 cent higher than Tuesday at 64.80-65 cents.

Statistics:

  • July crude contract on Nymex settled up 7 cents at $19.13/bbl.
  • July gasoline contract on Nymex settled up 0.38 cents at 61.77 cents/gallon.
  • Gasoline prices rallied to near-record highs, with forecasts suggesting potential prices of 65-66 cents/gallon.
  • RFG production in the Gulf Coast fell for the second consecutive week.
  • Summer driving demand led to increased cash prices for RFG at New York Harbor (65.60-65.80 cents).
  • Cash prices for RFG in the Gulf Coast strengthened by 0.90-1 cent (64.80-65 cents).

Sources:

  • Traders and industry experts cited in the article.
  • Smith Barney Inc. (no specific publication date).
  • New York Mercantile Exchange (no specific publication date).

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