Crude Contracts Recover on Bullish Inventory Statistics and Refinery Runs
Crude prices on the New York Mercantile Exchange (Nymex) rebounded from the previous session's losses on the back of bullish inventory statistics and increased refinery runs. The June crude contract settled up 17 cents at $20.29 per barrel, despite the Iraqi Parliament's unanimous rejection of the U.N. one-time oil sale proposal. However, North Sea crude output's decline in March provided some support to crude prices, with the decrease expected to impact U.S. ports.
Key Takeaways:
- The June crude contract on Nymex settled up 17 cents at $20.29 per barrel.
- North Sea crude output fell 1.4% in March to 2.6 million barrels per day, with most of the decrease expected to be passed on to U.S. ports.
- The threat of a May 3 strike at Petrobras, Brazil's state oil company, also contributed to bullish market sentiment.
- Petrobras exports 43,000 barrels per day of petroleum products, reports said.
- The crude/gasoline crack spread on Nymex narrowed to $5-$5.50 as June gasoline traded 80 cents-$1 per barrel less than May gasoline on Nymex.
- Russell G. Heinen, a consultant with Houston-based Purvin & Gertz Inc., predicted a sharp backwardation of gasoline prices on Nymex, which could lead to a products rally being short-lived.
- Cash gasoline prices on the Gulf Coast remained stable at 61 cents-61.5 cents per gallon amid little fresh news.
Statistics:
- The June crude contract on Nymex settled up 17 cents at $20.29 per barrel.
- North Sea crude output fell 1.4% in March to 2.6 million barrels per day.
- Petrobras exports 43,000 barrels per day of petroleum products.
- The June gasoline contract on Nymex settled at 61.72 cents per gallon.
- The July gasoline contract on Nymex settled at 60.42 cents per gallon.
- The crude/gasoline crack spread on Nymex narrowed to $5-$5.50.
Sources:
- The New York Mercantile Exchange (Nymex)
- Pegasus Econometric Group
- Petrobras, Brazil's state oil company
- Purvin & Gertz Inc.
- A cash trader in Houston