Month: February 2013

“After 9 weeks of advances which took oil prices from $87 to $99 a barrel in NY and $104 to $119 in London, prices broke on Wednesday and Thursday taking NY oil down $4.58 a barrel and London down $3.99. A modest bounce on Friday closed out the week with NY at $93.13 and London at $114.10. While much of the price drop was a reaction to previous gains, the EIA reported on Thursday that US crude inventories had gained 4.1 million barrels the week before last and were now at the highest level in more than 30 years for the time of year…”

“Oil prices climbed for most of last week with NY oil approaching recent highs of $98 a barrel on Thursday and Brent trading around $118. On Friday prices fell on profit taking and bad economic news from Europe. After the selloff, NY closed at $95.86 a barrel and London at $117.66. New York gasoline futures, however, were strong all week closing at $3.13 a gallon – up 15 percent since mid-January. Most analysts have trouble seeing oil prices moving much higher, short of a major reduction in exports, as demand in 2013 seems to be heading lower in the EU, flat in North America, and uncertain in Asia. The major forecasters – IEA, EIA, and OPEC — are mixed as to what will happen in the rest of the year.”

“Brent oil continued the climb that has been going on since early December, closing on Friday at $118.90. Prices are now up nearly $18 a barrel in the last two months. New York crude ended a couple of dollars lower for the week at $95.72 on weak US demand, the continuing glut at Cushing, and rising US stockpiles. A major refinery in Illinois which is scheduled to shut down for maintenance in late February added to fears of an increasing glut in the Midwest.”

“Oil prices continued to rise last week with Brent crude closing at $116.76 on Friday, only a few dollars below the highs set in the spring of 2011 and 2012. New York crude, which is still held down by the glut of tight oil and Canadian crude in the Midwest along with seasonal refinery maintenance, closed at $97.89 on Friday, up $1.89 for the week as compared to the $3.84 increase in the price of Brent.”