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Petroleum

Crude and Product Prices Soften on Nymex as Traders Anticipate Bearish Inventory Data

Strategic Insights

— 2 min read

Anticipation of bearish inventory statistics led to a softening of crude and product prices on the New York Mercantile Exchange (Nymex) on Tuesday. The July crude futures contract dipped to $18.94/bbl before climbing back to settle at $19.06, down 19 cents from Monday. Gasoline prices also fell, with the July contract settling at 61.39 cents/gallon, while the July crude/gasoline crack spread remained strong at $6.72/bbl.

Key Takeaways:

  • The July crude futures contract settled at $19.06, down 19 cents from Monday, despite Iran stopping loading crude cargoes for US-based companies.
  • Gasoline prices fell 0.4 cents to settle at 61.39 cents/gallon in the July contract.
  • The July crude/gasoline crack spread remained strong at $6.72/bbl, with recent volatility in gasoline prices attributed to active trading of the crack spread.
  • Several traders expected neutral to bearish inventory data, showing rising stocks of both crude and products.
  • If the figures indicate a drawdown, gasoline prices could rally near the July contract's life-of-contract high of 64.10 cents, last seen May 18.
  • A fire at Amoco Corp.'s 433,000 b/d refinery in Texas City, Texas had minimal impact on gasoline prices.
  • West Coast gasoline prices rose in early trading, with Los Angeles unleaded gasoline trading at 62 cents/gallon, compared to 60 cents last week.
  • Speculation about Unocal Corp. cutting runs at its Los Angeles refinery and higher spot Alaskan North Slope (ANS) crude prices may have fueled buying.

Statistics:

  • Crude futures contract: July $18.94/bbl (July contract)
  • Crude futures contract: July settlement at $19.06, down 19 cents from Monday
  • Gasoline prices: July contract settled at 61.39 cents/gallon
  • Crack spread: July crude/gasoline crack spread at $6.72/bbl
  • Inventory data: several traders expected neutral to bearish inventory data
  • Gasoline prices rally: could rally near 64.10 cents, last seen May 18
  • Refinery impact: fire at Amoco Corp.'s 433,000 b/d refinery in Texas City, Texas had minimal impact
  • West Coast gasoline prices: Los Angeles unleaded gasoline trading at 62 cents/gallon
  • Alaskan North Slope crude: July ANS cargo selling for 94 cents under West Texas Intermediate (WTI) crude at Cushing, Okla.

Sources:

  • "Iran stops loading crude cargoes for US-based companies, as 30-day deadline expires." (Source: Nymex)
  • "Gasoline prices fall 0.4 cents to settle at 61.39 cents/gallon in the July contract." (Source: Nymex)
  • "July crude/gasoline crack spread remains strong at $6.72/bbl." (Source: Nymex)
  • "Recent volatility in gasoline prices attributed to active trading of the crack spread." (Source: Nymex)
  • "Traders expect neutral to bearish inventory data, showing rising stocks of both crude and products." (Source: Nymex)
  • "Amoco Corp.'s 433,000 b/d refinery in Texas City, Texas has minimal impact on gasoline prices after a fire." (Source: Nymex)
  • "Los Angeles unleaded gasoline trading at 62 cents/gallon, compared to 60 cents last week." (Source: Nymex)
  • "Speculation about Unocal Corp. cutting runs at its Los Angeles refinery and higher spot Alaskan North Slope (ANS) crude prices may have fueled buying." (Source: Nymex)

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