[LINK] Oil Background Explanatory per Barrel
tomk at unwired.com.au
Sat Feb 26 09:50:13 AEDT 2011
The effect of a $1.00 per barrel increase or decrease affects the US
bowser price at the rate $[USD]0.025 per Gallon +/- depending on if the
$1.00 per barrel is up or down.
Therefore last month, Oil was $82.00 per barrel.
Yesterday it reached $120.
That relates to a 95 cent per gallon increase at the pumps in the USA.
The US have a means of offsetting the price differential of foreign
crude by pegging their browser pricing to West Texas Crude [WTI].
The pricing difference between Foreign and WTI broke two records this
week, Wednesday and Today. (In other words, the US are struggling to
maintain a pre GFC igniting browser price]
U.S. Gulf Oil Premiums Widen as Cushing Discount Steady at $14
By Aaron Clark -
U.S. Gulf crude premiums strengthened as the benchmark West Texas
Intermediate, priced in Cushing, Oklahoma, held steady at about $14
compared with its European counterpart.
The gap between April-delivery WTI futures and Brent, the basis for
European and West African crudes, narrowed 2 cents to $14.06 at 1:31
p.m. in New York. The differential settled at a record $15.94 Feb. 16.
When Brent is higher than WTI, it strengthens the value of low-sulfur
U.S. grades that compete with West African oils priced against Brent.
The spread averaged 63 cents in 2010.
Light Louisiana Sweet's premium widened 75 cents to $19.75 a barrel at
12:12 p.m. in New York, according to data compiled by Bloomberg. Heavy
Louisiana Sweet's premium to WTI also strengthened 75 cents, to $19.50.
Among Gulf Coast sour, or high-sulfur, grades, Mars Blend's premium to
WTI strengthened $2 to $15 a barrel, while Poseidon's premium widened
$1.65 to $15.25 over the benchmark.
Thunder Horse's premium to WTI strengthened 25 cents to $18.25. Southern
Green Canyon's discount narrowed $1.80 a barrel to $14 a barrel.
West Texas Sour's discount widened 25 cents to $3.75. WTS is delivered
in Midland, Texas, so its price is less influenced by imports. ...<SNIP>
Quote/ [From: http://online.wsj.com/article/BT-CO-20110225-711833.html]
OIL FUTURES: Crude Settles Higher As Libya Stays In Focus
NEW YORK (Dow Jones)--Crude futures settled higher Friday, ending near
$98 a barrel as oil markets remain focused on the violent unrest in
Light, sweet crude for April delivery settled up 60 cents at $97.88 a
barrel on the New York Mercantile Exchange. Brent crude on the ICE
futures exchange settled 78 cents higher at $112.14 a barrel.
Oil prices finished the week up 14%, but the surge came amid a
roller-coaster trading environment due to falling oil production in
Libya. While Friday's session remained muted, on Thursday prices
whipsawed in an $8 range, reaching two-and-a-half year highs above $103
a barrel. Saudi Arabia and a group of major oil-consuming nations said
they had plenty of oil available, however, sending futures into negative
With Moammar Gadhafi's decades-long rule over the oil-rich nation
increasingly imperiled by violent opposition, investors are wary that
any new developments in the crisis could send oil prices surging.
"Certainly people don't want to be short going into the weekend," said
Stephen Schork, head of oil-trading advisor Schork report, referring to
bets prices will fall.
The International Energy Agency, which represents many of the world's
largest oil-consuming nations, said the unrest has curtailed up to
750,000 barrels a day of Libya's 1.6 million barrels a day of oil
production. The agency said it would "continue to closely monitor" the
situation and could tap strategic stocks when necessary.
Saudi officials are in talks to supply refineries with oil from their
spare production capacity as well, which could make up for any
"The crucial question remains whether the Gadhafi regime will be toppled
within a couple of days with some reasonable succession scheme, or
whether the country is heading towards a prolonged civil war," wrote JBC
While oil investors remain glued to reports out of Libya, analysts said
actions by Saudi Arabia or the IEA to help with any disruptions could
tame the recent price surge. The ICE raised margin requirements Friday
for its Brent futures contracts, pushing speculative traders to sell
some contracts to lock in profits.
Brent futures set a new record for volume on the ICE Thursday, topping a
record set Wednesday. Volume in Nymex-traded futures is also elevated.
Brent, the European benchmark, continues to trade at a sharp premium to
its U.S. counterpart. The gap between Brent and Nymex-traded West Texas
Intermediate crude was recently near $14, due to a large supply glut in
the U.S. that has kept a lid on prices in recent weeks.
U.S. crude oil stockpiles rose by 800,000 barrels last week, according
to data released Thursday by the Department of Energy.
Front-month March reformulated gasoline blendstock, or RBOB, settled
2.28 cents, or 0.8%, higher at $2.7395 a gallon. March heating oil ended
5.36 cents higher at $2.9309 a gallon.
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