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Petroleum

Crude Oil Prices Fluctuate Amid Volatility and Trading Activity

Strategic Insights

— 2 min read

Crude oil prices experienced significant fluctuations on the New York Mercantile Exchange (Nymex) on Thursday, influenced by a combination of factors. The expiration of June crude options contributed to early volatility, with prices rising to $15.68/bbl before declining to a low of $15.20/bbl. Despite this, the contract ultimately closed 13 cents lower at $15.24/bbl.

As ministers from the Organization of Arab Petroleum Exporting Countries (OAPEC) prepare to meet in Damascus, some traders speculate that output cuts may be discussed. However, no agreement is expected to be reached. Meanwhile, refined products, such as gasoline and heating oil, also showed losses, with gasoline falling 0.34 cents to 52.19 cents/gallon and heating oil settling at 43.58 cents/gallon, down 0.24 cents.

In the natural gas market, prices rose 2-4 cents in Louisiana and South Texas due to increased air conditioning demand. The Nymex Henry Hub gas contract for June delivery edged up 2.4 cents to settle at $2.159/MMBtu.

Key Takeaways:

  • Crude oil prices on the New York Mercantile Exchange (Nymex) fluctuated on Thursday, influenced by the expiration of June crude options and trading activity.
  • The June Nymex light, sweet crude futures contract peaked at $15.68/bbl and declined to a low of $15.20/bbl before closing 13 cents lower at $15.24/bbl.
  • Refined products, such as gasoline and heating oil, showed losses, with gasoline falling 0.34 cents to 52.19 cents/gallon and heating oil settling at 43.58 cents/gallon, down 0.24 cents.
  • In the natural gas market, prices rose 2-4 cents in Louisiana and South Texas due to increased air conditioning demand.
  • The Nymex Henry Hub gas contract for June delivery edged up 2.4 cents to settle at $2.159/MMBtu.
  • Sun Refining & Marketing's 68,000 b/d fluid catalytic cracker in Philadelphia is expected to return to full speed in a matter of days, potentially impacting prices.
  • Marathon Ashland's 220,000 b/d refinery in Catlettsburg, Ky., has returned to service and is at full capacity, also influencing prices.
  • A 270 MMcfd gas plant in Kansas is expected to restart Friday evening after a scheduled outage, potentially affecting natural gas prices in the Midcontinent.

Statistics:

  • June Nymex light, sweet crude futures contract: $15.68/bbl (peak), $15.20/bbl (low), $15.24/bbl (close)
  • Gasoline prices: 51.60 cents/gallon (low), 52.19 cents/gallon (close), down 0.34 cents
  • Heating oil prices: 44.50 cents/gallon (peak), 43.58 cents/gallon (close), down 0.24 cents
  • Nymex Henry Hub gas contract for June delivery: $2.157/MMBtu (previous close), $2.159/MMBtu (settlement)
  • Propane inventory: 38.4 million bbl (end of April), up 10.2 million bbl from the start of the month
  • U.S. propane stocks increase: 2nd largest monthly increase in April since Energy Information Administration (EIA) started monitoring the fuel.

Sources:

  • Energy Information Administration (EIA)

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