Crude Prices Rise Despite Heating Oil Drop

Strategic Insights -

A sharp increase in bullish inventory figures and the closure of a major oil refinery supported crude prices on Friday, despite a drop in heating oil prices and pressure from speculators. The February crude contract on the New York Mercantile Exchange (Nymex) settled up 19 cents at $19.55/bbl as the American Petroleum Institute posted a 4.36 million bbl draw on inventories. Meanwhile, the expiration of the January heating oil contract triggered profit-taking among speculators, causing a sharp drop in prices.

Key Takeaways:

  • The February crude contract on Nymex settled up 19 cents at $19.55/bbl, a significant gain despite the drop in heating oil prices.
  • The American Petroleum Institute posted a 4.36 million bbl draw on inventories, a bullish indicator for crude prices.
  • The expiration of the January heating oil contract triggered profit-taking among speculators, causing a sharp drop in prices.
  • Gasoline prices followed heating oil lower, settling down 0.42 cents at 58.86 cents/gallon.
  • Confirmation that the 172,000 b/d Marcus Hook, Pa., refinery will definitely stay open through January pared losses.
  • Natural gas prices gained 1.1 cents to settle at $2.619/MMBtu, despite a compressor problem in Texas that reduced natural gas delivery to Louisiana's Henry Hub by 55%.

Statistics:

  • $19.55/bbl: The February crude contract on Nymex settled at this price, a gain of 19 cents from the previous day.
  • 4.36 million bbl: The American Petroleum Institute posted a draw on inventories, a bullish indicator for crude prices.
  • 19 cents: The gain in the February crude contract on Nymex.
  • 0.42 cents: The drop in gasoline prices.
  • 51.63 cents/gallon: The January heating oil contract settled at this price, a drop of 1.69 cents from the previous day.
  • 58.62 cents/gallon: The February heating oil contract settled at this price, a loss of 0.53 cents from the previous day.
  • 1.1 cents: The gain in natural gas prices.
  • $2.619/MMBtu: The natural gas price settled at this level, despite the compressor problem in Texas.

Sources:

  • American Petroleum Institute (API) Daily Report
  • New York Mercantile Exchange (Nymex) Contract Prices
  • Natural Gas Pipeline Co. of America
  • Transcontinental Gas Pipe Line