Crude Oil Prices Hit 1994 Highs Amid Violence in Yemen and North Sea Disruption

Strategic Insights -

Washington's escalating violence in Yemen, combined with news that Britain's Elf Enterprise Caledonia Ltd. had canceled four cargoes of Flotta crude from the North Sea, sent crude oil futures soaring to 1994 highs. West Texas Intermediate (WTI) crude oil futures for June delivery rose 41 cents to close at $17.70 per barrel on the New York Mercantile Exchange (Nymex). Meanwhile, June Brent contracts rallied 48 cents to close at $16.28 per barrel on London's International Petroleum Exchange.

Key Takeaways:

  • Crude oil prices hit 1994 highs driven by escalating violence in Yemen and news of North Sea disruptions.
  • Britain's Elf Enterprise Caledonia Ltd. canceled four cargoes of Flotta crude from the North Sea, shutting in 114,000 barrels per day (b/d) of production at the Piper Bravo and Saltire fields.
  • Technical problems at Nigeria's Qua Iboe crude oil terminal led to three-day loading delays on May cargoes.
  • Analysts cited a strengthening world economy, led by the recovery in the United States, and expressed moderate bullishness for the summer.
  • Crude oil prices are expected to put a squeeze on refining margins if they continue to rise.
  • Unleaded gasoline futures for June delivery to New York Harbor rose 0.37 cents to 50.10 cents per gallon.
  • June No. 2 heating oil jumped 0.79 cents to close at 48.10 cents per gallon.
  • Major oil companies took the rallies in stride, lowering unleaded regular gasoline by 0.12 cents to 53.95 cents per gallon.

Statistics:

  • West Texas Intermediate (WTI) crude oil futures for June delivery rose 41 cents to $17.70 per barrel
  • June Brent contracts rallied 48 cents to close at $16.28 per barrel
  • Crude oil prices are expected to put a squeeze on refining margins if they continue to rise
  • Unleaded gasoline futures for June delivery to New York Harbor rose 0.37 cents to 50.10 cents per gallon
  • June No. 2 heating oil jumped 0.79 cents to close at 48.10 cents per gallon

Sources:

  • Washington - no specific date mentioned (needs date)
  • New York Mercantile Exchange (Nymex)
  • International Petroleum Exchange (IPE)
  • The Oil Daily
  • Computer Petroleum Corp.
  • Nigeria's Qua Iboe crude oil terminal
  • Elf Enterprise Caledonia Ltd.