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Petroleum

Crude Futures Contracts Weaken on Anticipation of Bearish Inventory Reports

Strategic Insights

— 1 min read

Crude futures contracts on the New York Mercantile Exchange (Nymex) weakened in April 1995, in anticipation of bearish crude inventory reports from the American Petroleum Institute. The U.N. Security Council's decision to keep the oil embargo against Iraq in place added to market uncertainty. Meanwhile, a fire at a refinery in Blue Island, IL, temporarily boosted gasoline cash prices in Chicago.

Key Takeaways:

  • Crude futures contracts on Nymex dropped 25 cents to $17.94/bbl in April 1995, in anticipation of a report by the American Petroleum Institute indicating an increase in crude reserves.
  • Spot crude prices remained stable on the strength of Brent crude, with a trans-Atlantic spread of 1.48 cents/bbl between West Texas Intermediate crude and Brent.
  • A fire at Clark Refining & Marketing Inc.'s Blue Island, IL, refinery put a 12,000 b/d catalytic reformer out of action, temporarily boosting cash prices by 2 cents/gallon.
  • The April gasoline contract on Nymex settled down 1.02 cents at 52.79 cents/gallon, despite briefly gaining 2 cents/gallon due to the Blue Island incident.
  • Heating oil contracts on Nymex continued to decline, with the April contract settling down 1.27 cents at 44.34 cents/gallon, due to low demand and weak technical indicators.
  • Natural gas contracts on Nymex traded in narrow ranges, with the April contract settling up 1.4 cents at $1.47/MMBtu.

Statistics:

  • Crude futures contracts on Nymex dropped 25 cents to $17.94/bbl in April 1995.
  • Spot crude prices remained stable, with a trans-Atlantic spread of 1.48 cents/bbl between West Texas Intermediate crude and Brent.
  • Cash prices in Chicago for gasoline briefly gained 2 cents/gallon after the Blue Island incident.
  • The April gasoline contract on Nymex settled down 1.02 cents at 52.79 cents/gallon.
  • The April heating oil contract on Nymex settled down 1.27 cents at 44.34 cents/gallon.
  • Natural gas contracts on Nymex traded in narrow ranges, with a 1.4-cent increase in the April contract to $1.47/MMBtu.

Sources:

  • American Petroleum Institute
  • New York Mercantile Exchange (Nymex)
  • The Washington Post, April 1995 (no date provided in source)
  • Refco Inc.
  • A Midcontinent-based spot trader (name not provided)

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