Wild Ride on the Nymex: Crude Oil and Gasoline Futures Prices Swing Dramatically

Strategic Insights -

As the final minutes of trading before the Easter holiday approached, crude oil and gasoline futures prices on the New York Mercantile Exchange (Nymex) took a sudden and dramatic turn, leaving many traders stunned. The price surge was triggered by Mobil Corp.'s announcement to close a 63,000 b/d catalytic cracker at its Chalmette, La., refinery for two weeks of maintenance in April. This development rode gasoline futures upward, despite many traders having already settled out their expiring contracts and gone home. The surprise price swing on the Nymex overshadowed the most significant market development of the day, which was the drop of Europe's physical North Sea Brent market into a 10*/bbl contango, indicating price weakness.

Key Takeaways:

  • Crude oil prices surged on the Nymex, with unleaded regular gasoline futures for April delivery to New York Harbor expiring at 46.09*/gallon, up 1.27* from Wednesday.
  • At one point, gasoline prices soared as high as 49*/gallon, after being as low as 44.50* earlier in the day.
  • Mobil Corp.'s announcement to close a 63,000 b/d catalytic cracker at its Chalmette, La., refinery for two weeks of maintenance in April triggered the price surge.
  • The IPE had already closed for a four-day Easter holiday, and the Nymex trading surge came as a surprise.
  • Europe's physical markets took a turn for the worse, with North Sea cargo availabilities for April rising and ample supplies of Russian Urals and Iranian Light becoming available in the Mediterranean.
  • Unleaded regular gasoline futures carried May West Texas Intermediate (WTI) crude oil futures up 41* to $14.79/bbl.
  • May Brent futures were unchanged from Wednesday at $13.25/bbl on the IPE.
  • Average U.S. wholesale prices of unleaded regular moved up 0.23* to 51.06*/gallon.
  • April No. 2 heating oil futures expired at 45.80*/gallon, a gain of 0.76*.

Statistics:

  • The price swing on the Nymex was triggered by Mobil Corp.'s announcement to close a 63,000 b/d catalytic cracker for 2 weeks of maintenance in April.
  • Crude oil prices rose by $1.27* on the Nymex, with unleaded regular gasoline futures for April delivery expiring at 46.09*/gallon.
  • Gasoline prices reached as high as 49*/gallon, after being as low as 44.50* earlier in the day.
  • North Sea cargo availabilities for April rose, while ample supplies of Russian Urals and Iranian Light became available in the Mediterranean.
  • Unleaded regular gasoline futures carried May WTI crude oil futures up 41* to $14.79/bbl.
  • May Brent futures were unchanged from Wednesday at $13.25/bbl on the IPE.

Sources:

  • "Nymex Spree Steals Thunder from European Market Drop" (The Oil Daily in cooperation with Computer Petroleum Corp.)