Crude-Oil-Futures Prices Rise
Crude oil futures prices for July delivery are trading at $61.50/barrel today in New York because of a government report that U.S. crude stockpiles have dropped for a second week and because of disruptions at three domestic refineries--which have boosted gasoline prices above$2.30/gallon.
The Energy Department says U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 2.1 million barrels last Friday from the previous week to 368.5 million barrels. The week previous, inventories had dropped by 4.7 million barrels from 375.3 million barrels May 1.
The inventories have declined by 6.8 million barrels this month mostly because of the decline in crude oil imports into the U.S., the world’s biggest crude user. For example, the Energy Department says supplies brought into the country fell 12% to 8.71 million barrels a day in the week ended May 8, the lowest since September. Data on imports through May 15 will be made available this afternoon by the Energy Information Administration. Analysts expect that imports will have continued to decline.
Petroleum futures prices also have risen because of disruptions at U.S. refineries. The catalytic cracker was shut after a fire this week at Flint Hills Resources’s Corpus Christi plant in Texas. A catalytic cracker is used to make products such as gasoline and diesel.
Meanwhile, Sunoco has shut a gasoline-making unit at its Marcus Hook, Pa., plant following a fire last week. And, Valero Energy’s Delaware City, Del., plant released sulfur dioxide from its fluid catalytic cracking unit on May 18, forcing a shutdown.
The Energy Department report will probably show U.S. refineries operated at 81.8% of capacity last week, down from 83.7% the previous week. Refinery operations usually climb for the peak gasoline-consumption period, which lasts from the Memorial Day weekend in late May to Labor Day in September. However, U.S. crude oil refinery inputs of 14.1 million barrels/day during the week ending May 15 dropped 315,000 barrels/day from the previous week's average.
Gasoline production remained relatively unchanged from last week, averaging 8.7 million barrels/day. Distillate fuel production also remained unchanged from last week, averaging 4.1 million barrels/day. However, the Energy Department’s report shows that motor gasoline stocks fell 4.34 million barrels and distillates dropped 672,000 barrels. For gasoline, that may explain why today’s national average price of regular unleaded at the pump is $2.31/gallon. (Note: The Energy Informational Administration is forecasting regular unleaded gasoline’s 2009 price at $2.30/gallon.).
The Energy Department says U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 2.1 million barrels last Friday from the previous week to 368.5 million barrels. The week previous, inventories had dropped by 4.7 million barrels from 375.3 million barrels May 1.
The inventories have declined by 6.8 million barrels this month mostly because of the decline in crude oil imports into the U.S., the world’s biggest crude user. For example, the Energy Department says supplies brought into the country fell 12% to 8.71 million barrels a day in the week ended May 8, the lowest since September. Data on imports through May 15 will be made available this afternoon by the Energy Information Administration. Analysts expect that imports will have continued to decline.
Petroleum futures prices also have risen because of disruptions at U.S. refineries. The catalytic cracker was shut after a fire this week at Flint Hills Resources’s Corpus Christi plant in Texas. A catalytic cracker is used to make products such as gasoline and diesel.
Meanwhile, Sunoco has shut a gasoline-making unit at its Marcus Hook, Pa., plant following a fire last week. And, Valero Energy’s Delaware City, Del., plant released sulfur dioxide from its fluid catalytic cracking unit on May 18, forcing a shutdown.
The Energy Department report will probably show U.S. refineries operated at 81.8% of capacity last week, down from 83.7% the previous week. Refinery operations usually climb for the peak gasoline-consumption period, which lasts from the Memorial Day weekend in late May to Labor Day in September. However, U.S. crude oil refinery inputs of 14.1 million barrels/day during the week ending May 15 dropped 315,000 barrels/day from the previous week's average.
Gasoline production remained relatively unchanged from last week, averaging 8.7 million barrels/day. Distillate fuel production also remained unchanged from last week, averaging 4.1 million barrels/day. However, the Energy Department’s report shows that motor gasoline stocks fell 4.34 million barrels and distillates dropped 672,000 barrels. For gasoline, that may explain why today’s national average price of regular unleaded at the pump is $2.31/gallon. (Note: The Energy Informational Administration is forecasting regular unleaded gasoline’s 2009 price at $2.30/gallon.).
quoted from: Purchasing.com
