Sign in Subscribe
Petroleum industry

Oil and Gas Markets Experience Gains Across the Board

Strategic Insights

— 1 min read

After a tumultuous period, oil and gas markets showed gains across the board, with gasoline and natural gas leading the way. Favorable supply and demand numbers are beginning to influence market sentiment, as seen in the prices of unleaded regular gasoline and West Texas Intermediate (WTI) crude oil. Meanwhile, leading buyers of domestic crude oils reduced their postings, impacting term contract WTI prices. The warm weather also boosted air-conditioning demand, contributing to the increase in natural gas futures. As a result, prices for various refined products, including unleaded regular, No. 2, and low-sulfur diesel, decreased.

Key Takeaways:

  • Unleaded regular gasoline futures for July delivery rose 0.96*/gallon (39*/bbl) to close at 53.95*/gallon on the New York Mercantile Exchange.
  • West Texas Intermediate (WTI) crude oil futures for August delivery increased by 26* to $19.27/bbl.
  • The 3-2-1 crack spread, a measure of the profit margin for refineries, rose to $2.83/bbl.
  • Leading buyers of domestic crude oils reduced their postings by 25*/bbl, affecting term contract WTI prices.
  • August natural gas futures jumped 6.4* to $2.20/MMBtu due to warm weather and air-conditioning demand.
  • August North Sea Brent futures rose 14* to $17.31/bbl on London's International Petroleum Exchange.
  • The WTI-Brent spread widened to $1.96/bbl, potentially leading to a continued import of crude oils to the United States.
  • July No. 2 heating oil futures increased by 0.41* to 49.95*/gallon.
  • There was a decline in wholesale refined products prices across the board, reaching 59.64*/gallon for unleaded regular, 53.14*/gallon for No. 2, and 54.27*/gallon for low-sulfur diesel.

Statistics:

  • Unleaded regular gasoline futures for July delivery: +0.96*/gallon (39*/bbl)
  • West Texas Intermediate (WTI) crude oil futures for August delivery: +26* to $19.27/bbl
  • 3-2-1 crack spread: $2.83/bbl
  • Leading buyers of domestic crude oils posting reductions: 25*/bbl
  • August natural gas futures: +6.4* to $2.20/MMBtu
  • August North Sea Brent futures: +14* to $17.31/bbl
  • WTI-Brent spread: $1.96/bbl
  • July No. 2 heating oil futures: +0.41* to 49.95*/gallon
  • Wholesale refined products prices decline: 0.31*/gallon for unleaded regular, 0.35* for No. 2, and 0.31*/gallon for low-sulfur diesel

Sources:

  • The Oil Daily
  • Computer Petroleum Corp.
  • New York Mercantile Exchange (NYMEX)

Read more