California Crude Oil Postings Fall Amid Global Economic Uncertainty

Strategic Insights -

California crude oil postings dropped by an average of $5.55 per barrel on Monday, following a sharp decline in New York crude oil futures. The plunge was attributed to the Standard & Poor's downgrade of U.S. debt, which highlighted the nation's fragile economic health. Royal Dutch Shell PLC and ConocoPhillips led the cuts, while Chevron Corp. was more conservative in its reductions.

Key Takeaways:

  • California crude oil postings fell by an average of $5.55 per barrel on Monday, with some postings dropping more than others.
  • The decline was triggered by a $5.57-a-barrel drop in New York crude oil futures, the lowest finish since November 23.
  • Royal Dutch Shell PLC and ConocoPhillips cut their postings by $5.55 per barrel, while Chevron Corp. reduced its postings by $4.60 per barrel.
  • Chevron Corp., however, cut its Huntington Beach and Seal Beach postings by $7.60 per barrel.
  • Alaska North Slope crude was assessed at a premium of $20.25 per barrel over front-month Nymex crude.
  • Heavy California crude was assessed at 30 cents per barrel over Midway Sunset crude posting, while San Joaquin Valley light blend crude was assessed at $1.40 per barrel over Buena Vista crude posting.

Statistics:

  • California crude oil postings fell by an average of $5.55 per barrel on Monday.
  • The decline in New York crude oil futures was $5.57 per barrel, or 6.4%, at $81.31 per barrel.
  • Royal Dutch Shell PLC and ConocoPhillips cut their postings by $5.55 per barrel.
  • Chevron Corp. reduced its postings by $4.60 per barrel.
  • Alaska North Slope crude was assessed at a premium of $20.25 per barrel over front-month Nymex crude.
  • Heavy California crude was assessed at 30 cents per barrel over Midway Sunset crude posting.
  • San Joaquin Valley light blend crude was assessed at $1.40 per barrel over Buena Vista crude posting, including pipeline tariff to Los Angeles.

Sources:

  • Dow Jones Commodities News via Comtex, Aug 08, 2011.
  • Dow Jones Newswires, Cassandra Sweet, 415-439-6468, cassandra.sweet@dowjones.com.