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Petroleum

Crude Futures Prices Surge Amid Iraq Concerns, Hurricane Fear

Strategic Insights

— 1 min read

Crude futures prices on the New York Mercantile Exchange (Nymex) surged to $17.68/bbl on Thursday due to trader concerns over a potential US military response to Iraqi movements along the Kuwaiti border. The September contract later settled at $17.66/bbl, up 11 cents from the previous day. The market was also driven by rumors of up to 10 million-12 million bbl of North Sea crude heading to the US, which eased supply tightness concerns. Meanwhile, gasoline prices spiked to 54.40 cents/gallon due to mid-Atlantic refinery curtailments ahead of Hurricane Felix, before settling at 54.29 cents.

Key Takeaways:

  • Crude futures prices on the Nymex surged to $17.68/bbl on Thursday due to concerns over a potential US military response to Iraqi movements along the Kuwaiti border.
  • The September contract later settled at $17.66/bbl, up 11 cents from the previous day.
  • Rumors of up to 10 million-12 million bbl of North Sea crude heading to the US eased supply tightness concerns and contributed to the price surge.
  • Gasoline prices spiked to 54.40 cents/gallon due to mid-Atlantic refinery curtailments ahead of Hurricane Felix, before settling at 54.29 cents.
  • Sun Co. Inc. cut runs at two Pennsylvania refineries, the 50,000 b/d Philadelphia and 175,000 b/d Marcus Hook plants, due to Hurricane Felix.
  • Amoco Corp.'s 53,000 b/d Yorktown, Va. refinery operated at lower levels due to hurricane fears.
  • Heating oil prices rose 0.13 cents in the October contract to settle at 49.76 cents/gallon, indicating increased buying interest due to low inventory levels.
  • Cooling oil stocks are currently 135,000 bbl below year-ago levels of 1.34 million bbl, according to the American Petroleum Institute.

Statistics:

  • Crude futures prices surged to $17.68/bbl on Thursday, up from $17.55/bbl the previous day.
  • The September contract settled at $17.66/bbl, up 11 cents from $17.55/bbl.
  • Gasoline prices spiked to 54.40 cents/gallon, the highest level since the previous day's drop.
  • Heating oil prices rose 0.13 cents in the October contract to settle at 49.76 cents/gallon.
  • Cooling oil stocks are currently 135,000 bbl below year-ago levels of 1.34 million bbl.

Sources:

  • Bloomberg (no date)
  • "Crude futures surge on Iraq concerns" (no date)
  • "Gasoline prices spike on Hurricane Felix" (no date)
  • American Petroleum Institute (no date)
  • Nymex (no date)

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