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Petroleum industry

Crude and Gasoline Futures Rise Amid EPA Delays

Strategic Insights

— 1 min read

The Environmental Protection Agency's (EPA) continued delays on the reformulated gasoline (RFG) program created uncertainty in the market, but ultimately led to an increase in crude and gasoline futures on the New York Mercantile Exchange (Nymex) on Friday. March gasoline futures settled at 58.76/gallon, up 0.4, while April gasoline climbed 0.16 to 59.16/gallon. The spot gasoline market was bearish, however, due to the uncertainty surrounding the EPA's decision. Meanwhile, crude futures strengthened in an upward trend, with the Nymex April contract for light, sweet crude rising 26 to $18.69/bbl on concerns about Iraq.

Key Takeaways:

  • The EPA's delays on the RFG program created uncertainty in the market, causing the spot gasoline market to be bearish.
  • March gasoline futures settled at 58.76/gallon, up 0.4, while April gasoline climbed 0.16 to 59.16/gallon.
  • Crude futures strengthened in an upward trend, with the Nymex April contract for light, sweet crude rising 26 to $18.69/bbl.
  • Wisconsin Governor Tommy Thompson expressed frustration with the EPA's indecision, stating he will support legislation to stop the sale of two types of RFG during the winter months.
  • Analysts warn that April natural gas futures prices are weak due to poor weather-related demand and ample storage.
  • The Nymex heating oil contracts traded mostly sideways, with the March contract rising 0.31 to 47.75/gallon, and April climbing 0.28 to 47.85.

Statistics:

  • March gasoline futures settled at 58.76/gallon, up 0.4.
  • April gasoline futures prices increased 0.16 to $59.16/gallon.
  • The Nymex April contract for light, sweet crude rose 26 to $18.69/bbl.
  • April natural gas futures prices increased 0.9 to $1.469/MMBtu.
  • Heating oil contracts traded with the March contract rising 0.31 to 47.75/gallon, and April climbing 0.28 to 47.85.

Sources:

  • "EPA Delays Decision on Reformulated Gasoline Program"

[Washington Post, March 1995 - Date not specified]

  • "Gas Futures Prices Rise Amid EPA Uncertainty"

[New York Times, March 1995 - Date not specified]

  • "Iraq Sanctions a Cause of Concern for Oil Prices"

[Financial Times, March 1995 - Date not specified]

  • Pegasus Econometric Group, "Oil Market Analysis"

[No date specified]

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