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Petroleum

North Sea Crude Oil Supplies Weigh on Prices Despite Strong Demand

Strategic Insights

— 2 min read

Increased North Sea crude oil supplies put downward pressure on futures prices in March 1994, despite strong demand for heating fuels in the United States and Europe. The scheduling of 41 Forties Blend cargoes in March helped undermine April Brent futures, which declined 9 cents to $13.27 per barrel. West Texas Intermediate crude oil futures for March delivery fell 7 cents to $14.06 per barrel. March No. 2 heating oil futures dropped 0.77 cents to 47.05 cents per gallon, narrowing the difference between spot prices and futures to 6 cents per gallon.

Key Takeaways:

  • North Sea crude oil supplies increased in March 1994, with 41 Forties Blend cargoes scheduled, up from 33 in February.
  • April Brent futures fell 9 cents to $13.27 per barrel, while March West Texas Intermediate crude futures dropped 7 cents to $14.06 per barrel.
  • March No. 2 heating oil futures declined 0.77 cents to 47.05 cents per gallon, with spot prices narrowing to 6 cents per gallon.
  • Oil companies cut wholesale prices of No. 2 heating oil, low-sulfur diesel fuel, and regular gasoline, with an average reduction of 1.58 cents per gallon for No. 2 heating oil.
  • Unleaded regular gasoline futures for March delivery rose 0.26 cents to 41.87 cents per gallon, while March natural gas futures dipped 0.1 cents to $2.253 per MMBtu.

Statistics:

  • 41 Forties Blend cargoes scheduled in March 1994, up from 33 in February.
  • April Brent futures fell 9 cents to $13.27 per barrel.
  • March West Texas Intermediate crude futures dropped 7 cents to $14.06 per barrel.
  • March No. 2 heating oil futures declined 0.77 cents to 47.05 cents per gallon.
  • Oil companies cut wholesale prices of No. 2 heating oil by an average of 1.58 cents per gallon.
  • Unleaded regular gasoline futures for March delivery rose 0.26 cents to 41.87 cents per gallon.
  • March natural gas futures dipped 0.1 cents to $2.253 per MMBtu.
  • 1.5 million barrels of Alaska North Slope output were lost over the weekend due to high winds.
  • ANS price at the West Coast fell 10 cents per barrel to $11.68.

Sources:

  • Washington, unattributed (No date provided)
  • "North Sea crude flow to double this year", The Times of London (No date provided)
  • "Oil prices slide on North Sea supplies", Reuters (No date provided)
  • "Wholesale oil prices cut", The Oil Daily (No date provided)
  • "North Sea crude flow to double this year", Petroleum Intelligence Weekly (No date provided)

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