Gulf Oil and Gas accountACCOUNT

Crude Oil Rises on Concern Gasoline Supply May Be Insufficient

Source: Bloomberg 5/11/2007, Location: North America

Crude oil rose on concern that motor- fuel supplies may be disrupted this summer because of repairs at U.S. refineries and reduced oil output in Africa. Repairs were announced yesterday at refineries in Texas and Delaware, curbing gasoline production. U.S. gasoline demand peaks during the summer driving season, which starts with the Memorial Day holiday at the end of this month. Total SA shut an oil field in Congo after a fire yesterday. Nigerian output has been slashed over the past year because of militant attacks.

''The continued shutdowns at refineries show that the system is under stress,'' said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York.

Crude oil for June delivery rose 56 cents, or 0.9 percent, to settle at $62.37 a barrel at 2:52 p.m. on the New York Mercantile Exchange. Futures rose 0.7 percent this week and are 15 percent lower than a year ago.

Global oil demand is expected to rise 1.8 percent this year, to 85.72 million barrels a day, the International Energy Agency said today in a monthly report, little changed from its previous assessment. The Paris-based IEA, which was set up in 1974, advises 26 developed nations.

''U.S. gasoline stock cover is at a 16-year low for this time of year -- pushing pump prices to near record levels,'' according to the IEA report.

Gasoline Supplies

Gasoline supplies in the week ended May 4 were down 8 percent from the five-year average for the period, the Energy Department said May 9.

Gasoline for June delivery in New York jumped 2.6 cents, or 1.1 percent, to $2.3521 a gallon, the highest closing price since April 30.

Regular gasoline at the pump, averaged nationwide, rose 0.5 cent to $3.042 a gallon yesterday, according to AAA, the nation's largest motorist organization. Gasoline prices are up 5.4 percent from a year ago. Pump prices touched a record $3.057 a gallon on Sept. 2, 2005, after Hurricane Katrina damaged refineries and platforms along the Gulf of Mexico coast.

No new refinery has been constructed in the U.S. since 1976, helping push refinery margins higher. The profit margin, or ''crack,'' for turning crude oil into fuels has more than tripled this year. It rose 1.5 percent to $29.841 today, the highest since at least 1989, based on closing futures prices in New York.

Congolese Field Fire

Output from the N'kossa field in Congo was about 60,000 barrels a day prior to the fire, Patricia Marie, a Paris-based Total spokeswoman said by telephone today. About 36,000 barrels a day is Total's share. ''We have an internal investigation,'' Marie said. It was not clear what started the fire, she said.

Chevron Corp. announced this afternoon that it is evacuating hundreds of non- essential contractors and suspending some offshore drilling projects in Nigeria because of security threats.

''We are temporarily suspending some non-essential offshore operations to ensure the safety and security of our workforce,'' Michael Barrett, a Chevron spokesman, said today in an interview from London. The evacuations will have no impact on the company's oil production, he said.

West African countries produce low-sulfur, or sweet, crude oil, prized by U.S. refiners because of the proportion of high- value gasoline it yields.

Brent crude oil for June settlement rose $1.04, or 1.5 percent, to $66.83 a barrel on the London-based ICE Futures exchange. It was the highest close since May 1.

Crude oil may rise next week because of increased demand by refiners making gasoline, according to a Bloomberg News survey. Seventeen of 45 analysts surveyed, or 38 percent, said oil prices will rise. Fifteen, or 33 percent, said prices will decline and 13 forecast little change.

Financials and Investment News in United States >>

Iraq >>  4/2/2020 - Genel Energy plc announces that full payment has been received from the Kurdistan Regional Government ('KRG') for oil sales during October 2019. The T...
Argentina >>  4/1/2020 - Echo Energy, the Latin American focused upstream oil and gas company, provides a further update on the proposed restructuring of the Company's existin...

Iraq >>  4/1/2020 - Genel Energy plc notes the announcement by the operator of the Tawke licence, DNO ASA, that the Tawke field partners have received $77.2 million from ...
United States >>  3/31/2020 - TC Energy Corp would proceed with its $8 billion Keystone XL pipeline with financial backing from the oil-rich province of Alberta, pushing the long-d...

Italy >>  3/25/2020 - With respect to the information disclosed to the market on 18 March 2020, Eni has concluded in advance a revision to its planned activities as a resul...
Norway >>  3/25/2020 - Equinor presents updated outlook for 2020 and an around USD 3 billion action plan to strengthen the financial resilience in a market impacted by the C...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


United States Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 | 66 | 67 | 68 | 69 | 70 | 71 | 72 | 73 | 74 | 75 |

More News

Related Links

CA US
Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.