Petroleum and Natural Gas Futures Prices Surge on Expectations of Massive Replenishment

Natural gas and oil futures prices increased significantly on January 24, 1994, amidst expectations of a large replenishment of gas reservoirs and oil tanks to meet high demand. The prices surged due to worries that heating oil tanks and gas reservoirs would need to be refilled rapidly to meet last week's record heating fuel demand. February natural gas futures on the New York Mercantile Exchange skyrocketed 16.5 cents to $2.470 per million British thermal units (MMBtu), while March West Texas Intermediate crude oil futures rose 23 cents to $15.17 per barrel (bbl).

Key Takeaways:

• February natural gas futures prices increased by 16.5 cents, equivalent to about 99 cents per barrel on crude oil, on the New York Mercantile Exchange.
• March futures rose 7.7 cents to $2.283, while February No. 2 heating oil futures rose 1.36 dollars per gallon to 49.39 dollars per gallon.
• Amoco Corp. shutting down three units at its Chicago-area refinery after weekend fires contributed to the surge in prices.
• The Energy Information Administration (EIA) reported a huge 5.4 million bbl drawdown of distillate stocks in its delayed report.
• Unleaded regular gasoline futures for February delivery to New York Harbor rose 1.27 dollars per gallon to 43.31 dollars per gallon.
• West Texas Intermediate crude oil futures rose 23 cents to $15.17 per bbl.

Statistics:

• February natural gas futures prices increased by 16.5 cents to $2.470/MMBtu.
• March futures rose 7.7 cents to $2.283.
• February No. 2 heating oil futures rose 1.36 dollars per gallon to 49.39 dollars per gallon.
• Unleaded regular gasoline futures for February delivery to New York Harbor rose 1.27 dollars per gallon to 43.31 dollars per gallon.
• West Texas Intermediate crude oil futures rose 23 cents to $15.17/bbl.

Sources:

• "Petroleum futures prices soar on expectations of massive replenishment" (date not specified)
• The New York Mercantile Exchange (NYMEX)
• The American Petroleum Institute
• The Energy Information Administration (EIA)
• The Oil Daily, published by Computer Petroleum Corp.