Oil Markets Move Cautiously Higher Amid Uncertain Outlook and Severe Winter Weather

Strategic Insights -

Oil markets edged up on Tuesday as traders weighed the uncertain outlook against the impact of severe winter weather in the northern states. West Texas Intermediate crude oil futures rose as much as 28 cents to $14.67 per barrel, while April North Sea Brent futures gained 22 cents to $13.57 per barrel. However, traders remain skeptical about the Organization of Petroleum Exporting Countries (OPEC) reducing its production ceiling at its meeting on March 25. The State Department also stated that Iraq is far from meeting the United Nations' requirements for resuming oil exports.

Key Takeaways:

  • Oil markets moved cautiously higher on Tuesday as traders weighed the uncertain outlook against severe winter weather in the northern states.
  • West Texas Intermediate crude oil futures rose as much as 28 cents to $14.67 per barrel, while April North Sea Brent futures gained 22 cents to $13.57 per barrel.
  • Traders remain unconvinced that OPEC will substantially reduce its production ceiling at its meeting on March 25.
  • The State Department stated that Iraq is a long way from satisfying U.N. requirements for resuming oil exports.
  • April No. 2 heating oil futures rose to 45.55 cents per gallon, with low-sulfur diesel increasing to 53.63 cents per gallon.
  • Unleaded regular gasoline futures for April delivery to New York Harbor rose to 45.75 cents per gallon, while wholesale regular went up to 49.21 cents per gallon.
  • April natural gas futures continued to decline, coming down another 2.8 cents to $2.18 per MMBtu.

Statistics:

  • West Texas Intermediate crude oil futures rose 28 cents to $14.67 per barrel.
  • April North Sea Brent futures gained 22 cents to $13.57 per barrel.
  • Easter No. 2 heating oil futures rose 0.66 cents to 45.55 cents per gallon.
  • Low-sulfur diesel climbed 0.26 cents to 53.63 cents per gallon.
  • Unleaded regular gasoline futures for April delivery to New York Harbor rose 0.60 cents to 45.75 cents per gallon.
  • Wholesale regular gasoline prices increased by 0.06 cents to 49.21 cents per gallon.
  • April natural gas futures declined by 2.8 cents to $2.18 per MMBtu.

Sources:

  • New York Mercantile Exchange (NYMEX)
  • International Petroleum Exchange (IPE)
  • State Department
  • Computer Petroleum Corp.
  • The Oil Daily
  • United Nations (UN)
  • Organization of Petroleum Exporting Countries (OPEC)
  • Gulf Cooperation Council (GCC)