Oil Prices Rise Amid Brazilian Strike Rumors and Flooding Worries

Rumors of a potential oil workers strike in Brazil contributed to a significant increase in crude and petroleum product futures prices on October 19, 1994. Meanwhile, natural gas futures plummeted to life-of-contract lows for November 1994 through February 1995 delivery, amidst concerns about supply and a lack of demand. Brent futures for November delivery rose 20 cents to $16.36 per barrel, while November heating oil futures rose 0.83 cents to 48.21 cents per gallon.

Key Takeaways:

• Crude and product futures prices surged on October 19, 1994, due to rumors of another Brazilian oil workers strike, with light, sweet crude for November delivery increasing 20 cents to $17.42 per barrel on the New York Mercantile Exchange (Nymex).
• The November contract for light, sweet crude expires on the same day, causing traders to closely watch the December contract, which rallied 16 cents to $17.51 per barrel.
• Natural gas futures contracts for delivery in November through February fell to life-of-contract lows, pressured by strong bearish sentiment and a lack of demand, with November futures dropping 5 cents to $1.585 per million British thermal units (MMBtu) and December futures falling 3.2 cents to $1.846 per MMBtu.
• The American Gas Association's weekly storage survey reported that storage is at 94% of capacity nationwide, further contributing to the decline in natural gas futures prices.
• Regular gasoline futures for November delivery to New York Harbor fell 0.82 cents to 48.00 cents per gallon, while December futures, the first month for the reformulated gasoline (RFG) contract, fell 0.72 cents to 55.85 cents per gallon.
• November Brent futures rallied 20 cents to $16.36 per barrel on London's International Petroleum Exchange, while major oil companies experienced a mixed reaction to the day's news, with wholesalers lowering unleaded gasoline 0.24 cents to 53.80 cents per gallon, raising No. 2 heating oil 0.24 cents to 51.87 per gallon, and raising low-sulfur diesel 0.30 cents to 53.71 cents per gallon.

Statistics:

• Crude futures prices rose 20 cents to $17.42 per barrel (19 Oct 1994).
• Natural gas futures contracts for delivery in November through February fell to life-of-contract lows.
• November futures dropped 5 cents to $1.585/MMBtu.
• December futures fell 3.2 cents to $1.846/MMBtu.
• Regular gasoline futures for November delivery to New York Harbor fell 0.82 cents to 48.00 cents/gallon.
• December futures for reformulated gasoline (RFG) fell 0.72 cents to 55.85 cents/gallon.
• November Brent futures rallied 20 cents to $16.36/bbl.
• Unleaded gasoline prices lowered by 0.24 cents to 53.80 cents/gallon.
• No. 2 heating oil prices raised by 0.24 cents to 51.87/gallon.
• Low-sulfur diesel prices raised by 0.30 cents to 53.71 cents/gallon.

Sources:

• WASHINGTON -- Crude and product futures prices climbed higher Wednesday, buoyed by talk of another Brazilian oil workers strike, while natural gas futures settled at life-of-contract lows. (Source: Nymex)
• The November contract expires today, so traders were closely watching the December contract, which rallied 16 cents to $17.51/bbl. (Source: Nymex)
• Natural gas futures contracts for delivery in November through February fell to life-of-contract lows in late trading, pressured by strong bearish sentiment. (Source: American Gas Association)
• Storage is at 94% of capacity nationwide. (Source: American Gas Association)
• Regular gasoline futures for November delivery to New York Harbor fell 0.82 cents to 48.00 cents/gallon. (Source: Nymex)
• November Brent futures rallied 20 cents to $16.36/bbl on London's International Petroleum Exchange. (Source: International Petroleum Exchange)