It has never been more important to know where your E&P companies sell their oil.
Brent oil for October settlement reached a high of $112.73 yesterday in London. It's currently around $111.50/bbl.
U.S. oil selling into the Louisiana Gulf Coast market gets close to Brent pricing for their oil since it is competing directly with imported oil. Most of the oil coming from offshore GOM gets this price.
West Texas Intermediate (WTI) is now selling at more than a $24/bbl discount to Brent and most other crudes.
Gulfport (GPOR) sells 85% of their oil into the Gulf Coast market
Denbury (DNR) sells 60% of their oil into the Gulf Coast market
Oil Prices
Oil Prices
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Prices
The Commerce Department report showed U.S. consumer spending in July climbed 0.8 percent, the biggest gain since February. The median estimate of 74 economists surveyed by Bloomberg News was for a 0.5 percent increase.
“With the improvement in consumer spending in the U.S., one would perhaps think that there may be a glimmer of hope in confidence returning,” said David Lennox, a resource analyst at Fat Prophets in Sydney, who predicts crude in New York will average $115 a barrel this year. “All avenues still point to the price of West Texas and Brent probably moving higher.” < I agree that the supply / demand fundamentals all point to higher oil prices over the next six months. - dan
Dollar goes up & oil goes down: The dollar rose against the euro after European Central Bank President Jean-Claude Trichet said yesterday the bank is reviewing its assessment of inflation risks as economic growth slows. The single European currency was at $1.4406, down 0.7.
Refinery Operations Normalized
Refineries returned to normal rates after Hurricane Irene passed. PBF Energy Partners LP returned its Paulsboro, New Jersey and Delaware City, Delaware refineries to normal rates, according to an Energy Department website. ConocoPhillips may attempt to start an alkylation unit at its 238,000 barrel-a-day Bayway plant in New Jersey today after shutting the refinery because of Irene, according to a person familiar with the plant’s operations.
Buckeye Partners LP said operations on its pipelines to Auburn and Brooklyn, New York, resumed and deliveries to Buffalo, New York, are scheduled to start today. Deliveries to John F. Kennedy and LaGuardia airports in New York City from storage in Linden, New Jersey, will begin as inventory levels allow, the Houston-based company said yesterday.
U.S. crude-oil inventories may have climbed by 875,000 barrels last week as refineries cut operating rates in preparation for Irene and the government released barrels from the Strategic Petroleum Reserve, according to the median of eight analyst estimates in a Bloomberg survey.
Stockpile Release
The release of emergency stockpiles is almost complete. The department delivered 25.58 million barrels of oil from July 17 to Aug. 28, according to a statement on its website. The supplies are part of a 30.64 million-barrel sale to companies in cooperation with the Paris-based International Energy Agency, which sought to counter lost Libyan output from the conflict between rebels and the regime of Muammar Qaddafi.
The Energy Department report will show gasoline stockpiles fell 900,000 barrels last week, according to the survey. Distillate-fuel inventories, a category that includes heating oil and diesel, probably increased 900,000 barrels.
The CME Group Inc. declared a force majeure for heating oil shipments into New York for August because of Hurricane Irene, the company said in a statement yesterday. The legal clause allows companies to miss scheduled shipments because of circumstances beyond their control.
“With the improvement in consumer spending in the U.S., one would perhaps think that there may be a glimmer of hope in confidence returning,” said David Lennox, a resource analyst at Fat Prophets in Sydney, who predicts crude in New York will average $115 a barrel this year. “All avenues still point to the price of West Texas and Brent probably moving higher.” < I agree that the supply / demand fundamentals all point to higher oil prices over the next six months. - dan
Dollar goes up & oil goes down: The dollar rose against the euro after European Central Bank President Jean-Claude Trichet said yesterday the bank is reviewing its assessment of inflation risks as economic growth slows. The single European currency was at $1.4406, down 0.7.
Refinery Operations Normalized
Refineries returned to normal rates after Hurricane Irene passed. PBF Energy Partners LP returned its Paulsboro, New Jersey and Delaware City, Delaware refineries to normal rates, according to an Energy Department website. ConocoPhillips may attempt to start an alkylation unit at its 238,000 barrel-a-day Bayway plant in New Jersey today after shutting the refinery because of Irene, according to a person familiar with the plant’s operations.
Buckeye Partners LP said operations on its pipelines to Auburn and Brooklyn, New York, resumed and deliveries to Buffalo, New York, are scheduled to start today. Deliveries to John F. Kennedy and LaGuardia airports in New York City from storage in Linden, New Jersey, will begin as inventory levels allow, the Houston-based company said yesterday.
U.S. crude-oil inventories may have climbed by 875,000 barrels last week as refineries cut operating rates in preparation for Irene and the government released barrels from the Strategic Petroleum Reserve, according to the median of eight analyst estimates in a Bloomberg survey.
Stockpile Release
The release of emergency stockpiles is almost complete. The department delivered 25.58 million barrels of oil from July 17 to Aug. 28, according to a statement on its website. The supplies are part of a 30.64 million-barrel sale to companies in cooperation with the Paris-based International Energy Agency, which sought to counter lost Libyan output from the conflict between rebels and the regime of Muammar Qaddafi.
The Energy Department report will show gasoline stockpiles fell 900,000 barrels last week, according to the survey. Distillate-fuel inventories, a category that includes heating oil and diesel, probably increased 900,000 barrels.
The CME Group Inc. declared a force majeure for heating oil shipments into New York for August because of Hurricane Irene, the company said in a statement yesterday. The legal clause allows companies to miss scheduled shipments because of circumstances beyond their control.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group