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Petroleum

Crude Oil and Gasoline Futures Prices Rally Amid Low Inventory Numbers

Strategic Insights

— 1 min read

Petroleum traders attribute the recent surge in crude oil and gasoline futures prices on the New York Mercantile Exchange to low industry stocks reported by the American Petroleum Industry (API). The API report, released on October 26, 1994, revealed that gasoline stocks had dropped to 202 million bbl, a decline of 5.85 billion bbl from the previous week. This drop in inventory numbers overpowered the influence of the Houston, TX, floods on the futures market, leading to a rally in crude and gasoline prices. Regular gasoline futures peaked at 55.35 cents per gallon on October 26 before stabilizing at 54.71 cents, an increase of 2.25 cents.

Key Takeaways:

  • Gasoline stocks fell to 202 million bbl, a drop of 5.85 billion bbl from the previous week, according to the API report.
  • Regular gasoline futures peaked at 55.35 cents per gallon on October 26, before stabilizing at 54.71 cents, an increase of 2.25 cents.
  • The November contract is expected to hit 55.50* by the end of the week, but settle lower next Monday.
  • Colonial Pipeline Co. has promised to have one refined product line out of Houston operating at full capacity by Monday.
  • Gasoline futures for December delivery rallied 0.80* to settle at 59.08* per gallon.
  • Traders attributed most of gasoline's strength to the latest weekly American Petroleum Institute (API) inventory data.

Statistics:

  • Gasoline stocks fell to 202 million bbl, a drop of 5.85 billion bbl from the previous week.
  • Regular gasoline futures peaked at 55.35 cents per gallon on October 26, before stabilizing at 54.71 cents, an increase of 2.25 cents.
  • The November contract is expected to settle lower next Monday.
  • Colonial Pipeline Co. has promised to have one refined product line out of Houston operating at full capacity by Monday.
  • Gasoline futures for December delivery rallied 0.80* to settle at 59.08* per gallon.
  • RFG production averaged 142,000 b/d last week, up from 82,000 b/d the previous week.
  • U.S. RFG stocks increased to 1.7 million bbl.

Sources:

  • American Petroleum Industry (API) inventory report, October 26, 1994
  • Department of Energy (DOE) data, released October 26, 1994
  • New York Mercantile Exchange (Nymex) trading data, October 26, 1994
  • Colonial Pipeline Co. press release, October 26, 1994
  • Various news sources, October 26, 1994

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