OPEC Output Cuts and Venezuela Strike Boost Oil Prices
OPEC's potential extension of output cuts beyond March combined with news of a planned strike by Venezuela's largest oil workers unions against state oil company Petroleos de Venezuela sent crude oil futures soaring on Monday. This development, coupled with tightening world crude inventories, contributed to a significant increase in oil prices, with December crude futures on the New York Mercantile Exchange (Nymex) gaining 22¢ and closing at $25.13/barrel.
Key Takeaways:
- OPEC's potential extension of output cuts beyond March boosted crude oil futures, with December Nymex crude gaining 22¢ and closing at $25.13/barrel.
- News of a planned strike by Venezuela's largest oil workers unions against state oil company Petroleos de Venezuela also contributed to the price increase.
- December North Sea Brent crude futures on the International Petroleum Exchange surged to $25/bbl, reaching its highest level in three years.
- In contrast, Nymex December gasoline futures lost 0.05¢ to settle at 70.20¢/gallon, while heating oil futures closed up 0.32¢ at 66.54¢/gallon.
- Increased heating demand due to cold weather helped lift cash prices 42¢ at New York city gate and 14¢ at Chicago.
Statistics:
- December crude futures on Nymex gained 22¢ to close at $25.13/barrel.
- December North Sea Brent crude futures on the International Petroleum Exchange surged to $25/bbl, a three-year high.
- Nymex December heating oil futures closed up 0.32¢ at 66.54¢/gallon.
- Nymex December gasoline futures lost 0.05¢ to settle at 70.20¢/gallon.
- Cold weather in South Texas helped spot gas prices spike by 17¢, while in Louisiana, prices spiked by 16¢.
- Cash prices at New York city gate increased by 42¢ and at Chicago by 14¢.
Sources:
- see story, p7
- New York Mercantile Exchange (Nymex)
- International Petroleum Exchange