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Petroleum

Gasoline Prices Reach Three-Year High on NYMEX Amid Brazilian Oil Workers' Strike

Strategic Insights

— 2 min read

Prices for gasoline futures skyrocketed to a three-year high on the New York Mercantile Exchange (Nymex) on May 16, 1995, reaching 66.3 cents per gallon. The record prices were largely attributed to the ongoing Brazilian oil workers' strike, which has significantly reduced oil imports and availability. The strike's impact on the market has been substantial, with June crude contract prices increasing by 18 cents to $20.08 per barrel, and June heating oil prices rising by 0.59 cents to 50.45 cents per gallon.

Key Takeaways:

  • Gasoline futures prices hit a three-year high of 66.3 cents per gallon on NYMEX on May 16, 1995, largely due to the Brazilian oil workers' strike.
  • The strike has reduced oil imports and availability, leading to increased crude and heating oil prices.
  • June crude contract prices rose by 18 cents to $20.08 per barrel, and June heating oil prices increased by 0.59 cents to 50.45 cents per gallon.
  • The June crude/gasoline Nymex crack spread reached a record $7.74 per barrel, up 39 cents from Monday and $1.08 from a week ago.
  • Brazilian oil production is averaging 300,000 barrels per day (b/d), or 41% of pre-strike levels, while refining output totals 290,000 b/d, or 19% of normal.
  • Gasoline prices are forecast to rise to 69 cents per gallon in the short term and reach 73 cents per gallon in the long term, according to Alan H. Levine, a Bethesda, Md.-based analyst with Smith Barney Inc.
  • Domestic demand for crude and gasoline is expected to remain strong through the summer, driving prices to continue rising.
  • Marathon Oil Co. has temporarily closed its 70,000 b/d refinery in Texas City, Texas, due to a leak in a fluid catalytic cracking unit.
  • Concerns about Exxon Corp.'s Baytown, Texas, refinery's status also lent support to gasoline prices, with the refinery unlikely to return to operations right away.

Statistics:

  • Gasoline futures prices reached a three-year high of 66.3 cents per gallon on NYMEX on May 16, 1995.
  • June crude contract prices rose by 18 cents to $20.08 per barrel.
  • June heating oil prices increased by 0.59 cents to 50.45 cents per gallon.
  • The June crude/gasoline Nymex crack spread reached a record $7.74 per barrel.
  • Brazilian oil production is averaging 300,000 b/d, or 41% of pre-strike levels.
  • Refining output totals 290,000 b/d, or 19% of normal.
  • Gasoline prices are forecast to rise to 69 cents per gallon in the short term.
  • Forecasted long-term gasoline price: 73 cents per gallon.

Sources:

  • WASHINGTON -- Gasoline prices soared to three-year highs Tuesday on the New York Mercantile Exchange (Nymex), pushing up crude and heating oil prices as well (May 16, 1995).
  • Industry sources predict that gasoline contract prices will continue to rise and eventually reach 73 cents per gallon (May 16, 1995).
  • Alan H. Levine, a Bethesda, Md.-based analyst with Smith Barney Inc., forecasted that gasoline prices will rise to 69 cents per gallon in the short term and reach 73 cents per gallon in the long term (May 16, 1995).
  • The June crude/gasoline Nymex crack spread reached a record $7.74 per barrel, up 39 cents from Monday and $1.08 from a week ago (May 16, 1995).

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