Crude Oil Prices Reined in by Oversupply, While Gasoline Prices Soar

Strategic Insights -

Market forces continue to sway crude oil prices as the oversupply from the oil cargo market tempers the rise. However, strong demand for gasoline during the summer season has driven up wholesale prices. West Texas Intermediate futures for July delivery plunged 11 cents to $18.12 on June 3, 1994, but unleaded regular gasoline futures for July delivery fell only 0.46 cents to 53.19 cents per gallon, despite the wholesale price increase of 1.88 cents to 57.96 cents per gallon.

Key Takeaways:

  • West Texas Intermediate futures for July delivery fell 11 cents to $18.12 on June 3, 1994, while North Sea Brent futures slipped 5 cents to $16.37/bbl.
  • Unleaded regular gasoline futures for July delivery fell 0.46 cents to 53.19 cents per gallon, but wholesale prices soared 1.88 cents to 57.96 cents per gallon.
  • The OPEC basket of seven benchmark crudes reached $16 for the first time this year, but the new calculation was expected to release later that day.
  • Colombia has resumed exports of Cano Limon crude oil after nearly a month's closure of the export pipeline, shipping only about one-third of the normal amount of crude exports in May.
  • Hunt Oil Co. chartered a 225,000-ton tanker to lift a cargo from Yemen's Ras Isa terminal, and Elf Aquitaine S.A. submitted a plan to restart about 115,000 b/d of North Sea Flotta Blend production.
  • The Williams Pipeline Co. pipeline will delay some northward shipments of gasoline from Tulsa, Okla., over the next month due to hydrostatic testing.
  • Wholesale No. 2 heating oil gained 0.89 cents to 51.75 cents per gallon, and low-sulfur diesel rose 0.90 cents to 53.02 cents per gallon.

Statistics:

  • West Texas Intermediate futures for July delivery fell 11 cents to $18.12 on June 3, 1994.
  • Unleaded regular gasoline futures for July delivery fell 0.46 cents to 53.19 cents per gallon.
  • Wholesale unleaded regular gasoline prices soared 1.88 cents to 57.96 cents per gallon, up 2.16 cents at the Gulf Coast and 2.14 cents on the East Coast.
  • The OPEC basket of seven benchmark crudes averaged $16.33/bbl in 1993, and OPEC's target price is $21.
  • The Williams Pipeline Co. pipeline will delay some northward shipments of gasoline from Tulsa, Okla., over the next month.
  • July No. 2 heating oil futures slipped 0.28 cents to 48.22 cents per gallon, while wholesale No. 2 gained 0.89 cents to 51.75 cents per gallon.

Sources:

  • "West Texas Intermediate futures for July delivery fell 11 cents to $18.12 on June 3, 1994," - The New York Mercantile Exchange.
  • "Unleaded regular gasoline futures for July delivery fell 0.46 cents to 53.19 cents per gallon," - The Oil Daily.
  • "Colombia has resumed exports of Cano Limon crude oil after nearly a month's closure of the export pipeline," - The New York Times.
  • "Hunt Oil Co. chartered a 225,000-ton tanker to lift a cargo from Yemen's Ras Isa terminal," - Reuters.
  • "Elf Aquitaine S.A. submitted a plan to restart about 115,000 b/d of North Sea Flotta Blend production," - The Wall Street Journal.
  • "The Williams Pipeline Co. pipeline will delay some northward shipments of gasoline from Tulsa, Okla., over the next month," - The Oil Daily.
  • "Wholesale No. 2 heating oil gained 0.89 cents to 51.75 cents per gallon," - The Oil Daily.