Oil Market Remains Volatile Amid Nigeria's Crude Export Disruptions

Strategic Insights -

The oil market is experiencing increased volatility amidst disruptions in Nigeria's crude exports due to an ongoing labor strike. Despite this, gasoline futures continued to rise on August 9, 1994, with regular unleaded futures increasing by 0.78 cents to 59.22 cents/gallon. Meanwhile, crude oil futures decreased by 12 cents to $19.30/bbl, while natural gas futures showed a slight increase of 3.2 cents to $1.703/MMBtu.

Key Takeaways:

  • Gasoline futures continued to rise on August 9, 1994, with regular unleaded futures increasing by 0.78 cents to 59.22 cents/gallon.
  • Crude oil futures decreased by 12 cents to $19.30/bbl, despite the strike's impact on production.
  • Natural gas futures increased by 3.2 cents to $1.703/MMBtu, halting their recent decline.
  • The 3-2-1 crack spread rose to a healthy $4.30/bbl, indicating improved refining margins.
  • Wholesale prices of refined oil products continued to decrease, with No. 2 heating oil decreasing by 0.0168 to $0.5391 and wholesale unleaded regular gasoline decreasing to $0.6609 per gallon.
  • Oil companies have been slashing wholesale prices of refined products, with 25-cent per barrel increases for domestic crude prices.
  • The Nigerian oil workers' strike has entered its sixth week, putting oil companies in a difficult position due to the risks of supporting the military dictatorship and alienating their workforce.
  • The strike has resulted in the cancellation of scheduled loadings of six tankers at the Bonny, Forcados, and Brass River terminals, leading to reduced crude supplies.

Statistics:

  • The increase in gasoline futures was priced at 0.0078 to $0.5922 per gallon.
  • Crude oil futures decreased by $0.12 to $19.30/bbl.
  • Natural gas futures increased by $0.032/MMBtu to $1.703/MMBtu.
  • Wholesale No. 2 heating oil decreased by $0.0168 to $0.5391.
  • Wholesale unleaded regular gasoline decreased to $0.6609 per gallon.

Sources:

  • The Oil Daily: a nationwide rack price survey in cooperation with Computer Petroleum Corp.
  • New York Mercantile Exchange: September unleaded regular gasoline futures gained 0.78 cents to 59.22 cents/gallon.
  • New York Mercantile Exchange: September No. 2 heating oil futures increased 0.32 cents to 50.17 cents/gallon.
  • International Petroleum Exchange: September North Sea Brent crude oil futures dipped 2 cents to $17.85/bbl.