Wright Express Corporation Archives

Oil Slips After 3 Straight Gains … Pump Prices Rise

August 9, 2012 jrobinson

The price of oil dropped a bit Wednesday after three days of increases.

Benchmark oil fell 53 cents to $93.14 per barrel Wednesday in New York.

Oil prices had increased more than $6 per barrel since Thursday following a positive report on the US job market. In addition, quarterly earnings for many companies have been stronger than expected.

Yet, the overall economy continues to struggle, which has fuelled speculation that the Federal Reserve may take action to promote economic growth.

A stronger economy means more demand for oil and other energy products. Oil demand is better than it was earlier in the year but hasn’t recovered to year-ago levels, said Michael Lynch, president of Strategic Energy & Economic Research.

Oil got a temporary boost Wednesday from a bigger-than-expected decline in US stockpiles. The Energy Department said oil inventories fell 3.7 million barrels last week to 369.9 million barrels. Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted a much smaller decline of 300,000 barrels.

But the economic news from Europe remains grim. The Banque de France said it expects the French economy to slip into recession in the third quarter. German industrial production and exports fell in June.

Traders will closely watch fresh economic data from China Thursday on inflation, factory production and retail sales. China is the world’s second-biggest economy and a huge importer of oil.

At the pump, the national average price of gasolene rose about one penny to $3.647 per gallon, according to AAA, Wright Express and the Oil Price Information Service. That’s up nearly 27 cents from a month ago. It’s about two cents less than a year ago.

Brent crude, which is used to price international varieties of oil, gained 28 cents to $112.26 per barrel in London.

– AP

http://jamaica-gleaner.com/gleaner/20120809/business/business1.html

Oil Prices Fall On Global Economic Concerns

June 12, 2012 jrobinson

Oil fell Monday on the realisation that a short-term fix in Spain won’t offer a long-term solution to Europe’s debt crisis.

A multibillion-dollar bailout loan for Spain’s banks generated initial enthusiasm in the global stock, bond and energy markets. But by the close in New York, the good feeling had given way to scepticism.

Benchmark oil fell $1.40 to $82.70 per barrel in New York. Brent crude, which is used to price international varieties of oil, dropped 81 cents to $98.66 per barrel in London. The broad S&P 500 stock index fell nearly one per cent.

Leaders of European countries agreed over the weekend to lend Spain up to $125 billion to help its troubled banking system. Spain is the fourth European country after Greece, Portugal and Ireland to request financial help since the debt crisis began.

Oil jumped above $86 per barrel in trading in Asia. But the relief was temporary, replaced by concern over Spain’s ability to repay the money. The potential for Greece to abandon the European currency still hangs over the market, as does a deepening recession in Italy. That turmoil, as well as slowing economic growth in China and the United States (US), is reducing demand for oil, gasolene and diesel fuel.

It’s not yet clear whether Europe’s ongoing efforts to put the financial crisis to rest will result in an economic turnaround. “It just doesn’t seem like that’s very close,” said Michael Lynch, president of Strategic Energy & Economic Research.

Meanwhile, oil supplies continue to build despite ongoing weak demand around the world.

US oil production topped six million barrels a day in the first quarter of 2012, which was a 14-year high, according to the Energy Information Administration. Most of the increase was the result of more production in North Dakota, Texas and the Gulf of Mexico.

Oil’s decline was tempered by data showing China imported nearly six million barrels of crude a day in May. That was about 10 per cent more than April and 18 per cent more than a year earlier. China is a huge importer of oil and other commodities.

Meanwhile, motorists are continuing to see a steady decline in pump prices. The national average for gasolene fell less than a penny overnight to $3.54 per gallon, according to AAA, Wright Express and the Oil Price Information Service. That’s 19 cents less than a year ago. Gas has dropped 50 cents per gallon in a little more than two months.

Natural gas dropped 8.1 cents to $2.218 per 1,000 cubic feet. The price has plunged about 50 cents in three weeks as supplies remain well above normal levels.

In other trading, heating oil fell 3.64 cents to $2.638 per gallon and gasolene dropped 2.86 cent to $2.657 per gallon.

– AP

http://jamaica-gleaner.com/gleaner/20120612/business/business2.html

News Oil

Oil Hits Lowest Level In 2012

May 15, 2012 jrobinson

The price of oil fell to its lowest for the year Monday on continued doubts about some European countries’ ability to pay off massive government debts.

Benchmark West Texas Intermediate crude lost $1.35 to end the day at $94.78 per barrel on the New York Mercantile Exchange. That’s the lowest level since December 19.

Brent crude, which helps set the price for oil imported by United States (US) refineries, gave up $1.26 to finish at $111 per barrel in London. Brent was last this low at the end of January.

Oil declined as a leadership crisis in Greece raised doubts that it would comply with a eurozone-supported plan to get out of debt. Analysts see Greece as a test case for whether cash-strapped European nations can slash spending and improve their economies. Europe consumes 18 per cent of the world’s oil.

“You have to ask yourself who’s next after the Greeks,” said Gene McGillian, a broker and oil analyst at Tradition Energy. “What happens if Spain or other countries have similar troubles.”

Oil prices have been declining for most of the past two weeks as European leaders wrestled the debt crisis. The US also reported disappointing jobs growth and China’s manufacturing industry grew at a slower pace.

Boosting supplies

As the world’s economy appeared to slow down, major oil producing nations like Libya, Iraq and Saudi Arabia increased oil production, boosting supplies.

The decline in oil prices has helped make retail gasolene cheaper in the US. The national average fell by less than a penny over the weekend to $3.727 per gallon (98 cents a litre), according to auto club AAA, Wright Express and Oil Price Information Service.

In other futures trading, heating oil gave up 3.41 cents to end at $2.9295 per gallon, while wholesale gasolene lost 4.18 cents to finish at $2.959 per gallon. Natural gas dropped 7.8 cents to finish at $2.431 per 1,000 cubic feet.

http://jamaica-gleaner.com/gleaner/20120515/business/business2.html

News Oil

Oil Prices Fall On Growing US Supply

April 19, 2012 jrobinson

Oil prices dropped Wednesday after the government said US supplies grew more than expected last week.

Benchmark West Texas Intermediate crude fell $1.53 to finish at $102.67 per barrel in New York, while Brent crude lost 81 cents to end at $117.97 per barrel in London.

The Energy Information Administration reported that US crude oil supplies grew by 3.9 million barrels last week. Analysts expected an increase of 400,000 barrels. The government’s weekly report also said that US oil demand dropped 2.7 per cent, gasolene demand fell 2.8 per cent, compared with a year ago.

Anemic demands

The data suggest that motorists aren’t filling up as much ahead of the summer driving season.

“You continue to see some pretty anaemic fuel demand levels” in the US, said Gene McGillian, a broker and oil analyst at Tradition Energy.

US retail gasolene prices dipped slightly to a national average of $3.899 per gallon, according to AAA, Wright Express and Oil Price Information Service. The national average has declined by 2.6 cents this month, and it’s now just barely under $3.90 for the first time since March.

Experts say that gasolene prices have levelled off this month, but they’re likely to rise to around $4 per gallon during the next few weeks as more refiners switch to producing summer blends of fuel.

In other energy trading, heating oil gave up less than a penny to finish at $3.1182 per gallon and gasolene futures lost 3.13 cents to end at $3.2027 per gallon. Natural gas futures were unchanged at $1.9510 per 1,000 cubic feet.

http://jamaica-gleaner.com/gleaner/20120419/business/business3.html