Crude Oil Prices Consolidate Gains Amidst Profit-Taking and Inventory Uncertainty

Market-watchers had anticipated some consolidation in the crude oil market as it tries to break past the psychologically important $25/bbl level. Last week's large gains continued on Monday with some moderating support from gasoline, but crude prices ultimately fell slightly in New York due to profit-taking. The November light, sweet crude oil contract on the New York Mercantile Exchange (Nymex) decreased by 15 cents to $24.61/bbl, while October gasoline rose 0.78 cents/gallon to 72.66 cents. The crude oil market was relatively quiet, waiting for midweek inventory numbers, and received little attention from recent strike attempts by oil workers in Venezuela.

Key Takeaways:

• Crude oil prices continued to consolidate gains last week, with the November light, sweet crude oil contract on Nymex falling by 15 cents to $24.61/bbl.
• October gasoline prices rose 0.78 cents/gallon to 72.66 cents due to the unexpected shutdown of a 48,000 b/d catalytic cracker at Valero Energy Corp.'s Paulsboro, N.J., refinery.
• The market received little attention from recent strike attempts by oil workers in Venezuela, as previous attempts have quickly fallen apart.
• Natural gas spot prices fell 8 cents in Louisiana and 6 cents in South Texas due to mild weather on the East Coast.
• The Nymex Henry Hub October contract inched up 0.2 cents to $2.632/MMBtu in the next-to-last day of trading.

Statistics:

• The November light, sweet crude oil contract on Nymex fell by 15 cents to $24.61/bbl.
• October gasoline prices rose 0.78 cents/gallon to 72.66 cents.
• Natural gas spot prices fell 8 cents in Louisiana and 6 cents in South Texas due to mild weather.
• The Nymex Henry Hub October contract inched up 0.2 cents to $2.632/MMBtu.
• The trans-Atlantic arbitrage shrunk to 54 cents/bbl.

Sources:

• "Daily Price Snapshot", a service of Natural Gas Week, sister publication of The Oil Daily.
• The Oil Daily.