BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
- 5,865
A day late due to being at the pilot's bid closing, but here it is.....
Crude prices dropped the first of this week (28th and following), which isn't reflected in the following prices. While I've been on a trip then to PIT for the bid closing, it seems that Ernesto falling apart gets most/all of the credit.
Naturally, jet fuel prices also dropped. Both trends, if they don't reverse by Friday, will show up in next week's report.
Spot prices on 8/25/06 were:
NY Harbor jet - $2.1930
Gulf Coast jet - @2.1383
Los Angeles jet - $2.2430
Rotterdam jet - $2.1921
Singapore jet - $2.1650
WTI Cushing crude - $72.13
Brent crude - $72.58 [A North Sea grade, roughly equivalent to WTI]
Per Bloomberg today, 8/31/06 @ ~11:00AM:
WTI Cushing crude - $70.03
Brent crude - $68.52
From Platt's, regional jet fuel spot prices on 8/25/06:
Europe & CIS - $2.226
North America - $2.196
Asia & Oceania - $2.183
Middle East & Africa - $2.132
Latin & Central America - $2.159
An excerpt for the EIA's "This Week in Petroleum":
"While it is certainly possible that oil prices could continue the recent trend, dropping significantly over the next few months, there are several reasons why EIA believes the price drop may be limited. First, part of the reason prices have dropped recently is that upward pressure coming from gasoline during its peak demand season has vanished, with U.S. gasoline inventories apparently adequate to get through the upcoming Labor Day weekend, the nominal end of the peak season. Additionally, the lack of any major refinery or petroleum infrastructure damage through August, whether due to hurricanes or other reasons, has kept gasoline markets relatively calm. Thus, with the end of the peak gasoline season behind us and the peak heating fuel season not yet here, the market may be simply reflecting the usual shoulder period forces as it transitions from summer to winter seasons, resulting in an absence of product price pressures."
"Nevertheless, as we get closer to the upcoming winter season, any concerns about the future adequacy of heating oil supplies could keep upward pressure on oil prices. With strong global demand for distillate fuel (diesel fuel and heating oil combined), given that diesel fuel markets in Asia and Europe are particularly robust, heating oil prices may rise to attract sufficient imports this winter to balance demand. The fact that diesel fuel prices have not dropped precipitously, along with gasoline, is an indication that the current weakness does not extend to all petroleum product markets. In addition, many of the global situations that concerned oil markets earlier this year have not abated. For example, a United Nations deadline set for Iran to halt its nuclear enrichment program is just two days away, with no signs that Iran will adhere to this deadline. Oil supplies are still being disrupted in Nigeria, concerns about oil production in other parts of the world remain, and the peak of the hurricane season is still ahead. All of these issues could keep oil prices from falling much below $70 per barrel."
The last week of the current chart - next week it will include the average August spot prices. For the record, the August averages thru the 29th are:
NY Harbor - $2.1843
Gulf Coast - $2.1416
Los Angeles - $2.2615
View attachment 5131
Finally, a couple of statistics that I haven't included lately. Refinery utilization for the week ending 8/25/06 was 92.9%. Average jet fuel demand for the 4 weeks ending 8/25/06 was up 2.8% over the same period in 2005.
Jim
Crude prices dropped the first of this week (28th and following), which isn't reflected in the following prices. While I've been on a trip then to PIT for the bid closing, it seems that Ernesto falling apart gets most/all of the credit.
Naturally, jet fuel prices also dropped. Both trends, if they don't reverse by Friday, will show up in next week's report.
Spot prices on 8/25/06 were:
NY Harbor jet - $2.1930
Gulf Coast jet - @2.1383
Los Angeles jet - $2.2430
Rotterdam jet - $2.1921
Singapore jet - $2.1650
WTI Cushing crude - $72.13
Brent crude - $72.58 [A North Sea grade, roughly equivalent to WTI]
Per Bloomberg today, 8/31/06 @ ~11:00AM:
WTI Cushing crude - $70.03
Brent crude - $68.52
From Platt's, regional jet fuel spot prices on 8/25/06:
Europe & CIS - $2.226
North America - $2.196
Asia & Oceania - $2.183
Middle East & Africa - $2.132
Latin & Central America - $2.159
An excerpt for the EIA's "This Week in Petroleum":
"While it is certainly possible that oil prices could continue the recent trend, dropping significantly over the next few months, there are several reasons why EIA believes the price drop may be limited. First, part of the reason prices have dropped recently is that upward pressure coming from gasoline during its peak demand season has vanished, with U.S. gasoline inventories apparently adequate to get through the upcoming Labor Day weekend, the nominal end of the peak season. Additionally, the lack of any major refinery or petroleum infrastructure damage through August, whether due to hurricanes or other reasons, has kept gasoline markets relatively calm. Thus, with the end of the peak gasoline season behind us and the peak heating fuel season not yet here, the market may be simply reflecting the usual shoulder period forces as it transitions from summer to winter seasons, resulting in an absence of product price pressures."
"Nevertheless, as we get closer to the upcoming winter season, any concerns about the future adequacy of heating oil supplies could keep upward pressure on oil prices. With strong global demand for distillate fuel (diesel fuel and heating oil combined), given that diesel fuel markets in Asia and Europe are particularly robust, heating oil prices may rise to attract sufficient imports this winter to balance demand. The fact that diesel fuel prices have not dropped precipitously, along with gasoline, is an indication that the current weakness does not extend to all petroleum product markets. In addition, many of the global situations that concerned oil markets earlier this year have not abated. For example, a United Nations deadline set for Iran to halt its nuclear enrichment program is just two days away, with no signs that Iran will adhere to this deadline. Oil supplies are still being disrupted in Nigeria, concerns about oil production in other parts of the world remain, and the peak of the hurricane season is still ahead. All of these issues could keep oil prices from falling much below $70 per barrel."
The last week of the current chart - next week it will include the average August spot prices. For the record, the August averages thru the 29th are:
NY Harbor - $2.1843
Gulf Coast - $2.1416
Los Angeles - $2.2615
View attachment 5131
Finally, a couple of statistics that I haven't included lately. Refinery utilization for the week ending 8/25/06 was 92.9%. Average jet fuel demand for the 4 weeks ending 8/25/06 was up 2.8% over the same period in 2005.
Jim
