Sign in Subscribe
Petroleum

Crude Oil Prices Break $18/bbl Threshold on Nymex

Strategic Insights

— 2 min read

The price of crude oil broke the $18/bbl threshold on the New York Mercantile Exchange (Nymex) for the first time since late June 1995, driven by a significant drop in oil supplies to their lowest level since 1979. The October crude oil contract reached $18/bbl on August 22, 1995, up 18 cents/bbl from the previous trading session. The price spike was attributed to the low crude oil inventories, which stood at 301.38 million barrels, a level not seen since 1979. Despite indications of potential changes in U.N. resolutions, the sharp bullish inventory statistics continued to rally October crude oil prices.

Key Takeaways:

  • The October crude oil contract on Nymex settled at $18/bbl on August 22, 1995, up 18 cents/bbl from the previous trading session.
  • Crude oil supplies reached their lowest level since 1979, standing at 301.38 million barrels, with a deficit of 24.28 million barrels compared to the same period last year.
  • The price spike was caused by low crude oil inventories, which prompted a scramble for cash-market crude, with cash prices for West Texas Intermediate (WTI) crude in Cushing, Okla., spiking as high as $20.45/bbl.
  • The Midcontinent crude inventories experienced a 1.56 million bbl draw, second only to the Gulf Coast's drastic 4.36 million bbl draw, further exacerbating the shortage.
  • The market largely shrugged off comments by U.N. Special Commission head Rolf Ekeus regarding Iraq's new policy of cooperation, with U.S. troops continuing to move into the region as a precaution.
  • The October crude oil contract rallied for the sixth consecutive day, with energy analysts predicting that prices would continue their current trend through the end of the month before tapering off.

Statistics:

  • Crude oil supplies stood at 301.38 million barrels, their lowest level since 1979.
  • The price of October crude oil broke the $18/bbl threshold on Nymex for the first time since late June 1995.
  • The October crude oil contract settled at $18/bbl on August 22, 1995, up 18 cents/bbl from the previous trading session.
  • Crude inventories were 24.28 million bbl below year-ago levels.
  • Cash prices for West Texas Intermediate (WTI) crude in Cushing, Okla., spiking as high as $20.45/bbl, with a $2.25 premium over October barrels.

Sources:

  • "Crude Oil Price Breaks $18 Threshold on Nymex."
  • "U.S. Crude Oil Supplies at 16-Year Lows."
  • "Oil Prices Rally on Low Supplies."
  • "U.N. Resolution Impact on Oil Prices Shown in Inventory Data."

Read more