Crude Oil Prices Rise Amid Bullish Government Stock Figures and Nigerian Turmoil

Strategic Insights -

Crude oil prices experienced a surge of up to 54 cents per barrel on New York futures markets on Wednesday, before profit-taking set in. The American Petroleum Institute's (API) inventory reports released on Tuesday evening largely met expectations, but the Energy Information Administration's (EIA) numbers showed bullish stock figures for crude and gasoline, despite disappointing implied demand for gasoline. The rise in prices was sparked by concerns over the security of Nigerian supply, as Nigerian ruler Gen. Abdulsalam Abubakar dismissed his cabinet, except for its core decision-making unit, following the death of political detainee Moshood Abiola.

Key Takeaways:

  • Crude oil prices rose by up to 54 cents per barrel on New York futures markets on Wednesday, before profit-taking set in.
  • The Energy Information Administration's (EIA) numbers showed bullish stock figures for crude and gasoline, with crude stocks falling 2.9 million barrels and gasoline stocks dropping 4.2 million barrels.
  • The refinery utilization rate declined 1.2 percentage points to 98.1% of capacity.
  • Nigerian ruler Gen. Abdulsalam Abubakar dismissed his cabinet, except for its core decision-making unit, following the death of political detainee Moshood Abiola.
  • Nigeria provides the United States with about 800,000 barrels per day of crude oil.
  • Oil production from Nigeria is expected to continue despite concerns over security of supply.
  • The August New York Mercantile Exchange (Nymex) light, sweet crude contract settled at $13.85 per barrel, up 23 cents on the day.
  • August North Sea Brent futures on the International Petroleum Exchange gained 37 cents to close at $13.12 per barrel.
  • Gasoline futures lost 0.13 cents to close at 46.79 cents per gallon after attracting little buying interest.

Statistics:

  • Crude stocks fell 2.9 million barrels.
  • Gasoline stocks dropped 4.2 million barrels.
  • Distillate stocks rose 2 million barrels.
  • The refinery utilization rate declined 1.2 percentage points to 98.1% of capacity.
  • Nigeria provides the United States with about 800,000 barrels per day of crude oil.
  • The August New York Mercantile Exchange (Nymex) light, sweet crude contract rose by 23 cents to settle at $13.85 per barrel.
  • August North Sea Brent futures on the International Petroleum Exchange gained 37 cents to close at $13.12 per barrel.
  • August gasoline futures lost 0.13 cents to close at 46.79 cents per gallon.

Sources:

  • Energy Information Administration (EIA)
  • American Petroleum Institute (API)
  • New York Mercantile Exchange (Nymex)
  • International Petroleum Exchange (IPE)
  • Todays Oil and Gas (TOD), July 7, 1998, p. 7