EVENING SNAPSHOT - Americas Markets Summary

22 January 2014 23:00 Source:ICIS News

HOUSTON (ICIS)--Here is Wednesday’s end of day Americas oil and chemical market summary from ICIS.

CRUDE: Mar WTI: $96.73/bbl, up $1.76; Mar Brent: $108.27/bbl, up $1.54
NYMEX WTI crude futures rose sharply in response to raised global oil demand forecasts by the International Monetary Fund (IMF) and the International Energy Agency (EIA), with industrialised nations rather than emerging economies leading the recovery from the recession. Also providing underlying support, TransCanada announced that the southern leg of the Keystone XL pipeline, which will move crude oil from the Cushing, Oklahoma NYMEX delivery hub to the Gulf Coast, has become operational and should help alleviate the glut at the storage tank farm. A greater-than-expected build in crude stocks revealed by the weekly supply statistics from the American Petroleum Institute (API) encouraged a round of profit taking in the after-market.

RBOB: Feb $2.6771/gal, up 5.65 cents
Reformulated blendstock for oxygen blending (RBOB) gasoline futures continued to climb throughout the day as they tracked gains in crude and on increased buying ahead of winter storms expected this week.

NATURAL GAS: Feb $4.689/MMBtu, up 25.8 cents
Henry Hub natural gas futures on the NYMEX soared at the end of the trading day, as pipeline bottlenecks in the US northeast crimped further with the onset of Arctic-like temperatures that drove up heating demand. The strong rally was carried throughout the day despite the near-record production levels in storage.

ETHANE: higher at 36.25 cents/gal
Ethane spot prices traded as a high as 40 cents/gal on Wednesday, following strong natural gas futures, but prices retreated late in the day.

AROMATICS: mixed xylenes higher at $3.57-3.64/gal, toluene steady at of $3.55-3.63/gal
Prompt mixed xylenes (MX) spot prices were discussed within a higher range during the day, sources said. Meanwhile, toluene spot prices were within the previous toluene range of $3.55-3.63/gal FOB (free on board) on Friday.

OLEFINS: ethylene wider at 57.25-58.25 cents/lb, RGP lower at 62-64 cents/lb
US January ethylene bid/offer levels were heard at 57.25-58.25 cents/lb on Wednesday, wider than the previous day’s reported trade at 57.75 cents/lb. US January refinery-grade propylene (RGP) bid/offer levels fell to 62.00-64.00 cents/lb from 62.75-65.00 cents/lb the previous day.

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By Staff Reporter