Oil Prices Continue to Fall Despite High Winter Demand
Oil prices continued to decline on Friday, contradicting the high demand for heating oil and natural gas during the winter season. Traders are predicting that this decline could lead to renewed buying of heating oil and natural gas futures, but the downward pressure on crude oil may be longer-lasting due to reduced refinery throughput. Meanwhile, wholesale distillate prices continued to rise sharply, with oil companies increasing prices for No. 2 and low-sulfur diesel.
Key Takeaways:
- Prices of heating oil, natural gas, and crude oil futures fell on Friday, contradicting high winter demand.
- No. 2 heating oil futures for March delivery fell 1.24$/gallon to 51.06 on the New York Mercantile Exchange.
- Traders predict strong resistance to prices falling below 50$/gallon.
- February gas oil (No. 2) futures fell $5.50/ton on London's International Petroleum Exchange to $146.75/ton.
- Wholesale distillate prices continued to rise sharply, with oil companies increasing No. 2 by 0.75$/gallon to a new average of 57.22$.
- New York state reported a sharp rise in No. 2 retail prices, averaging 2.6$/gallon to $1.027.
- March natural gas futures slipped another 1.4* to $2.369/MMBtu, despite cash prices for swing supplies at the Gulf Coast at about $2.70.
- March West Texas Intermediate crude oil futures dropped 26$ to $15.63/bbl, while March North Sea Brent fell 27$ to $14.41.
Statistics:
- Heating oil futures fell 1.24$/gallon on Friday.
- Gas oil futures fell $5.50/ton on London's International Petroleum Exchange.
- Total decline in wholesale distillate prices: 57.22$ per gallon.
- New York state's average No. 2 retail price increase: 2.6$/gallon.
- March natural gas futures price: $2.369/MMBtu.
- Cash prices for swing supplies at the Gulf Coast: $2.70.
- March West Texas Intermediate crude oil futures price: $15.63/bbl.
- March North Sea Brent price: $14.41.
Sources:
- New York Mercantile Exchange
- The Oil Daily
- Computer Petroleum Corp.