Commodity Corner: Oil Soars Past $101 a Barrel

- Commodity Corner: Oil Soars Past $101 a Barrel

Thursday, June 09, 2011
Rigzone Staff
by Saaniya Bangee

Oil prices rose 1.2 percent Thursday as investors continued to speculate after OPEC's Wednesday meeting.

For the first time in almost 20 years, the Organization of Petroleum Exporting Countries (OPEC) was unable to reach a consensus on output quotas. The decision-divide, on whether to increase production or not, pushed prices past the $100-mark. Oil futures for July delivery gained $1.19 a barrel to settle at $101.93 Thursday.

The International Energy Agency, which advises some of the wealthiest nations on energy policies, said it was "disappointed" with OPEC's decision and was "ready to work with its member governments and others to help ensure that markets are well supplied."

Meanwhile, the U.S. Energy Department reported that 4.8 million barrels fell last week, the biggest decline of the year. Additionally, the Labor Department reported 427,000 jobless claims for this week, a thousand more than the previous week.

The intraday range for oil was $100.74 to $102.44 a barrel.

Futures for front-month natural gas plunged Thursday, settling at $4.674 per thousand cubic feet. The 3.6 percent-drop came on reports of above-average inventories. According to the Energy Information Administration (EIA), last week's supplies were at 2.187 trillion cubic feet, up 80 billion cubic feet. Prices for natural gas traded between $4.51 and $4.98 Thursday.

Gasoline increased by 6.11 cents settling at $3.04 a gallon. Gasoline futures fluctuated between $2.97 and $3.05.

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Commodity Corner: Oil Settles Above $101

- Commodity Corner: Oil Settles Above $101

Wednesday, May 25, 2011
Rigzone Staff
by Matthew V. Veazey

July crude oil gained $1.73 Wednesday to settle at $101.32.

The midweek rally occurred as the U.S. Energy Information Administration reported an unexpected increase in oil stocks and evidence that refiners are processing greater volumes of crude. In the former case, EIA announced that crude oil inventories have risen 600,000 barrels since last week to a total of 370.9 million barrels. Analysts polled by Platts had expected a 1.6 million-barrel decline in oil stocks.

EIA figures also showed a 1.4-percent week-on-week drop in total distillate stocks, with a May 20, 2011, figure of 141.1 million barrels. During the same period last year, distillate stocks stood at 152.5 million barrels. Last week's distillate stocks decline, coupled with a 502,000-barrel-per-day increase in refinery inputs (to 14.841 million b/d) week-on-week, indicate stronger demand for crude.

July crude oil traded within a range from $98.20 to $101.54 Wednesday.

Natural gas for June delivery gained three cents to $4.38 per thousand cubic feet as the eastern half of the U.S. faces more summer-like conditions. The June contract price fluctuated from $4.32 to $4.385 during the session.

Front-month gasoline also gained three cents to end the day at $3.02 a gallon. June gasoline peaked at $3.02 and bottomed out at $2.94.

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