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Petroleum industry

Crude Prices Rise on Bullish Inventory Data Anticipation

Strategic Insights

— 1 min read

Crude prices surged on the New York Mercantile Exchange (Nymex) on Tuesday, driven by expectations of bullish inventory data and a fire at the Russian Black Sea port of Novorossiisk. The blaze was quickly extinguished, and despite the initial spike in Brent prices, no shipping delays were reported. Analysts and traders remain optimistic about the long-term outlook for crude, despite predicting a possible pullback in the short term.

Key Takeaways:

  • The May crude contract on Nymex settled up 15 cents at $19.18/bbl, despite predictions of an increase in crude stocks.
  • Brent prices spiked briefly on news of the fire at Novorossiisk, but recovered quickly due to no shipping delays.
  • Cash prices for West Texas Intermediate (WTI) spot crude at Cushing, Okla., rose about 20 cents/bbl, driven by the strength of Nymex contracts.
  • Gasoline contracts on Nymex resumed their rally, with the May contract settling up 1.12 cents at 58.56 cents/gallon.
  • Gasoline prices at New York Harbor rose as much as 2.15 cents/gallon, reflecting a anticipated draw on gasoline stocks.
  • Analysts remain bullish on crude prices for the long term, but anticipate a possible pullback in the short term.
  • A Houston-based trader predicted that the May crude contract needs to pull back to levels of $18.80/bbl before having another upward pop.
  • Ric Navy, an analyst with New York-based Paribas Futures Inc., expects gasoline contracts to hold up and continue gaining ground.

Statistics:

  • The May crude contract on Nymex settled up 15 cents at $19.18/bbl.
  • Brent prices spiked briefly by an unspecified amount on news of the fire at Novorossiissk.
  • Cash prices for West Texas Intermediate (WTI) spot crude at Cushing, Okla., rose about 20 cents/bbl.
  • The May gasoline contract on Nymex settled up 1.12 cents at 58.56 cents/gallon.
  • Gasoline prices at New York Harbor rose as much as 2.15 cents/gallon.
  • The fire at Novorossiisk was extinguished quickly, with no reported delays in shipping.

Sources:

  • Sources unnamed from the oil industry.
  • Ric Navy, analyst with New York-based Paribas Futures Inc.
  • A Houston-based trader.

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