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Gas industry

Crude Prices Rally on Friday Amid Renewed North Sea Market Strength

Strategic Insights

— 2 min read

Crude oil prices on both sides of the Atlantic rallied on Friday, with West Texas Intermediate (WTI) futures for April delivery rising 30*/bbl to $14.44/bbl on the New York Mercantile Exchange (Nymex), while April North Sea Brent prices surged 46*/bbl to $13.65/bbl on London's International Petroleum Exchange. The rally was attributed to renewed strength on North Sea markets, where premiums for physical cargoes firmed throughout the day, and traders who were short-covering their positions after contract lows earlier in the week.

Key Takeaways:

  • WTI futures for April delivery rose 30*/bbl to $14.44/bbl on Nymex.
  • April North Sea Brent prices increased 46*/bbl to $13.65/bbl on London's International Petroleum Exchange.
  • Traders attributed London's rally to renewed strength on North Sea markets, where premiums for physical cargoes firmed throughout the day.
  • Roger Voltz, an economist with the Pegasus Economic Group in New York, cited reports of problems at three North Sea oil fields where bad weather halted loadings and threatened to make supplies tighter.
  • Traders were short-covering their positions after contract lows earlier in the week.
  • Crude futures were helped by traders who wanted to complete their buying before the price swings expected ahead of the March 25 meeting of the Organization of Petroleum Exporting Countries (OPEC).
  • Prices are expected to stay in the $13.80 to $14.45/bbl trading range next week, according to Voltz.
  • Healthy refining margins in the United States and Europe for gasoline and fuel oils are helping maintain refinery interest in crude.
  • Gasoline futures are expected to remain strong next week amid relatively heavy seasonal maintenance work at American refineries.
  • Major oil companies had a mixed reaction to Friday's news, according to the latest nationwide rack price survey produced by The Oil Daily in cooperation with Computer Petroleum Corp.

Statistics:

  • WTI futures for April delivery rose by 30*/bbl to $14.44/bbl on Nymex.
  • April North Sea Brent prices increased by 46*/bbl to $13.65/bbl on London's International Petroleum Exchange.
  • Unleaded gasoline futures for April delivery to New York Harbor rallied 0.89*/gallon to 44.87*/gallon.
  • April No. 2 heating oil firmed 0.42*/gallon to close at 43.70*/gallon.
  • Predictions of milder weather and a soft midmonth market made April natural gas futures turn bearish, falling 0.020*/MMBtu to 2.096/MMBtu.

Sources:

  • New York Mercantile Exchange (Nymex)
  • London's International Petroleum Exchange
  • Pegasus Economic Group
  • Organization of Petroleum Exporting Countries (OPEC)
  • The Oil Daily
  • Computer Petroleum Corp.

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