Oil Markets Recover as Concerns Over Product Oversupply Ease

Strategic Insights -

Oil markets experienced a rebound on Thursday as fears of oversupply appeared to recede and short-covering dominated trading. The January gasoline contract on the New York Mercantile Exchange (Nymex) closed at 51.85% per gallon, up 1.15%, while the Nymex heating oil contract gained even more, closing at 49.11% per gallon, up 1.44%. These fluctuations widened the differential between reformulated and conventional gasoline on the Gulf Coast, as well as in New York and Chicago.

Key Takeaways:

  • The January gasoline contract on the Nymex closed at 51.85% per gallon, up 1.15%.
  • The Nymex heating oil contract gained 1.44%, closing at 49.11% per gallon.
  • The differential between reformulated and conventional gasoline widened to more than 6% per gallon on the Gulf Coast.
  • Scattered reports of cuts in refinery runs may have contributed to the gasoline price gain, including a decrease in production at Shell Oil Co.'s Wood River, Ill., refinery.
  • The Nymex light, sweet crude for January delivery gained 25% to close at $17.12 per barrel.
  • Brent crude for January rose 23% on the International Petroleum Exchange in London to close at $16.29 per barrel.
  • The Nymex natural gas contract closed at $1.847 million British thermal units (MMBtu), up 6.3%.

Statistics:

  • 51.85% - the closing price of the January gasoline contract on the Nymex on Thursday.
  • 1.15% - the percentage increase in the January gasoline contract on the Nymex.
  • 1.44% - the percentage increase in the Nymex heating oil contract on Thursday.
  • $17.12 - the closing price of the Nymex light, sweet crude for January delivery on Thursday.
  • 25% - the percentage increase in the Nymex light, sweet crude for January delivery.
  • $16.29 - the closing price of Brent crude for January on the International Petroleum Exchange in London.
  • 23% - the percentage increase in Brent crude for January.
  • $1.847 million British thermal units (MMBtu) - the closing price of the Nymex natural gas contract on Thursday.
  • 6.3% - the percentage increase in the Nymex natural gas contract on Thursday.

Sources:

  • "Oil markets rebound as oversupply concerns ease," (exact wording of original title missing)
  • "Reformulated gasoline prices jumped after some refineries cut production," (exact wording of original title missing)
  • "Nymex light, sweet crude for January delivery gained 25% to close at $17.12/bbl," (exact wording of original text)
  • "Brent crude for January rose 23% on the International Petroleum Exchange in London to close at $16.29/bbl," (exact wording of original text)
  • "The Nymex natural gas contract closed at $1.847/MMBtu, up 6.3%," (exact wording of original text)