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Petroleum

Steady Conditions in U.S. Oil Markets Temper Price Hikes

Strategic Insights

— 1 min read

U.S. oil markets remained steady on Wednesday, with buyers unphased by low inventories as prices for crude, gasoline, and heating oil moved modestly upward. The American Petroleum Institute's report of a 1.7 million barrel decrease in national inventories failed to spark significant price changes, with light, sweet crude on the New York Mercantile Exchange (Nymex) increasing by just 10 cents to $17.74 per barrel for the December contract.

Key Takeaways:

  • Light, sweet crude on the Nymex ended the day up 10 cents at $17.74/bbl for the December contract.
  • Gasoline on the Nymex closed at 50.55 cents/gallon, up 0.8 cents, for the December contract.
  • The American Petroleum Institute (API) reported inventories were down by 1.7 million barrels nationwide.
  • Gasoline stocks were down 2.68 million barrels for regions east of the Rockies.
  • Traders and analysts believe there is a fair amount of upside potential in prices for crude and heating oil.
  • Purvin & Gertz Inc.'s analysis suggests gasoline weakness is likely to continue due to lack of market impact from the recent turnaround cycle.
  • The December Nymex contract for heating oil settled at 50.95 cents/gallon, up 0.3 cents, following API's report of a slight inventory decrease.

Statistics:

  • The API reported a 1.7 million barrel decrease in national inventories.
  • Gasoline stocks were down 2.68 million barrels for regions east of the Rockies.
  • The December Nymex contract for light, sweet crude increased by 10 cents to $17.74/bbl.
  • The December Nymex contract for gasoline closed at 50.55 cents/gallon, up 0.8 cents.
  • The December Nymex contract for heating oil settled at 50.95 cents/gallon, up 0.3 cents.

Sources:

  • American Petroleum Institute (API)
  • New York Mercantile Exchange (Nymex)
  • Purvin & Gertz Inc.
  • Colonial Pipeline

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