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Petroleum

Crude Oil Prices Fall Amid Weakening Gasoline Futures

Strategic Insights

— 1 min read

Crude oil prices declined on Friday, after initially breaking through $18/bbl on bullish inventory reports, only to be pared down by weakening gasoline futures. Trading volume was the highest since early December, with about 125,000 contracts changing hands. Industry and government surveys showed a steep 8 million bbl crude draw the previous week, which boosted February crude prices to settle near daily highs. However, the price correction indicated that traders are cautious about the market's direction.

Key Takeaways:

  • Crude oil prices fell 5cts. to $17.67/bbl on the New York Mercantile Exchange (Nymex) due to weakness in gasoline futures.
  • The February contract was up $0.64 to $17.95/bbl, but corrected to $17.67/bbl by the end of the day.
  • March crude slipped 7cts. to $17.62/bbl, after trading as high as $17.95.
  • Brent crude on the International Petroleum Exchange (IPE) inched up 4cts. to $16.50/bbl.
  • February heating oil on Nymex dropped 0.44cts. to 49.52cts./gallon, while March slipped 0.35cts. to 49.65cts..
  • Nymex heating oil/crude crack spread options traded in record numbers, with 2,578 contracts changing hands on Thursday.
  • February gasoline plummeted 0.74cts. to 53.77/gallon, despite a slight rise in gasoline stocks.
  • The second-to-third-month contango in gasoline futures widened, with March falling 0.65cts. to 53.02cts./gallon and April slipping 0.45cts. to 55.55cts..
  • February natural gas dropped for the fourth day in a row to settle at $1.499/MMBtu, down 5.3cts.

Statistics:

  • Crude oil trading volume was the highest since early December at about 125,000 contracts.
  • The February contract traded as high as $17.95/bbl before correcting to $17.67/bbl.
  • Brent crude on the IPE inched up 4cts. to $16.50/bbl.
  • February heating oil on Nymex dropped 0.44cts. to 49.52cts./gallon.
  • Nymex heating oil/crude crack spread options traded 2,578 contracts on Thursday.
  • February gasoline plummeted 0.74cts. to 53.77/gallon.
  • February natural gas dropped for the fourth day in a row to settle at $1.499/MMBtu, down 5.3cts.

Sources:

  • New York Mercantile Exchange (Nymex)
  • International Petroleum Exchange (IPE)
  • Industry and government surveys.

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