Crude Oil Prices Surge Above $15/bbl Amid Expectations of OPEC Meeting

Strategic Insights -

Petroleum prices skyrocketed above $15 per barrel (bbl) on January 5, 1993, marking the first time in three weeks that prices had reached this level. The surge is attributed to anticipation of a projected meeting of the Organization of Petroleum Exporting Countries (OPEC) to review oil production quotas. As a result, prices for various petroleum products, including no. 2 heating oil, February natural gas futures, and wholesale unleaded regular gasoline, rose significantly.

Key Takeaways:

  • Crude oil prices surged above $15/bbl for the first time in three weeks, with West Texas Intermediate (WTI) crude oil futures for February delivery jumping 67 cents to $15.34/bbl on the New York Mercantile Exchange (Nymex).
  • The rise in crude oil prices is expected to be influenced by the Organization of Petroleum Exporting Countries (OPEC) meeting to review oil production quotas.
  • Prices for no. 2 heating oil, February natural gas futures, and wholesale unleaded regular gasoline rose 1.85 cents/gallon, 12.7 cents/gallon, and 0.76 cents/gallon, respectively.
  • Trading of oil and gas futures on the Nymex rose 21% in 1993 to a new high of 45,618,438 contracts, equivalent to more than 180 million bbl per trading day.
  • Crude oil futures climbed 18% to 24,868,602 contracts, or nearly 100 million bbl daily.
  • Home heating oil trading rose 8% to 8,625,061 contracts, gasoline futures increased 11% to 7,407,809 contracts, and natural gas futures soared 143% to 4,671,533 contracts.
  • Options trading on the Nymex reached 7,156,518 contracts, with 250,938 futures and options contracts traded on the after-hours electronic "Access" system.
  • Trading on London's International Petroleum Exchange grew 29% to 13,769,978 contracts, or another 55 million bbls equivalent daily.

Statistics:

  • Crude oil prices surged 67 cents to $15.34/bbl.
  • Prices for no. 2 heating oil rose 1.85 cents/gallon to 47.88 cents/gallon.
  • February natural gas futures soared 12.7 cents to $2.091/MMBtu, equivalent to a 76 cents/bbl rise in crude prices.
  • Trading of oil and gas futures on the Nymex rose 21% to 45,618,438 contracts.
  • Crude oil futures climbed 18% to 24,868,602 contracts.
  • Home heating oil trading rose 8% to 8,625,061 contracts.
  • Gasoline futures increased 11% to 7,407,809 contracts.
  • Natural gas futures soared 143% to 4,671,533 contracts.

Sources:

  • "Petroleum prices surge above $15/bbl" (no date mentioned)
  • The Oil Daily (no date mentioned)
  • New York Mercantile Exchange (Nymex)
  • Organization of Petroleum Exporting Countries (OPEC)
  • International Petroleum Exchange (IPE)