Energy Sector Investing

Petroleum Report Crude Oil Inventories Increase 2.9M

The Energy Information Administration reports that U.S. crude oil inventories rose by 2.9 million barrels last week.  This increase was higher than analyst forecasts of 2.65 million barrels.

U.S. crude oil inventories (excluding those in the Strategic Petroleum Reserve) now stand at 354.2 million barrels.

U.S. crude oil imports decreased last week by 337,000 barrels per day.  For the week ending March 26, 2010 the U.S. oil imports averaged 9.1 million barrels per day.

Oil Prices Firm On Upbeat Consumer Confidence

Oil prices held firm on Tuesday in the wake of a better than anticipated report on consumer confidence.

In trading on the New York Mercantile Exchange crude oil for May delivery gained 20 cents to $82.37 a barrel.

Brent crude oil was up 11 cents to $81.28 in trading on the ICE futures exchange in London.

Other energy sector NYMEX future contracts:

May heating oil $2.1316 a gallon

May gasoline $2.2721 a gallon

May natural gas $3.973 per 1,000 cubic feet.

US Oil & Natural Gas Rig Count 1, 444

The number of rigs drilling for oil and/or natural gas in the United States rose by 17 last week to 1,444.

According to data released by Baker Hughes Inc. the number of natural gas rigs was up 2 rigs to 941.  The oil rig count was was up by 15 rigs to 489. The number of miscellaneous rigs  count stood at 14, the same as the previous week.  During the same week in 2009 the rig count stood at 1,039.

Rig counts in the United States are up dramatically from the record low of 488 in 1999, but far below the record high of 4,530 oil and natural gas wells operating in 1981.

Natural Gas Falls Below $4

Natural gas prices fell below $4 on Thursday following an EIA inventory report indicating that storage of natural gas increased by 11BCf from the previous week.  The Energy Information Administration report states that natural gas storage levels are currently eight percent higher than the five year average.  Natural gas in U.S. storage currently stands at 1.63 trillion cubic feet.

In trading on the New York Mercantile Exchange natural gas for April delivery was off four percent to $3.946.  During the trading session natural gas futures hit a record low for the April contract at $3.940 per thousand cubic feet.

Other NYMEX energy sector contracts:

Light, sweet crude oil for May delivery was down eight cents to $80.53 a barrel.

April heating oil down less than once cent to $2.0665 a gallon.

Gasoline declined 0.57 cent to settle at $2.2155 a gallon for the April contract.

Oil Inventories Increase 7.3 Million Barrels

The EIA reports that U.S. crude oil inventories increased by a whopping 7.3 million barrels for the week ending March 19.  U.S. crude oil inventories now stand at 351.3 million barrels, at the upper end of the average for this time of year.

The EIA also reports that gasoline inventories fell 2.7 million barrels.  Distillate fuel inventories were down by 2.4 million barrels and oil refineries operated at 81.1% of their capacity, up 0.5% from last week.

Oil Prices Marginally Lower

Oil prices were moderately lower in overnight trading on Tuesday as the U.S. dollar strengthened against the Euro.

Crude oil for May delivery traded at $80.06 (down 54 cents) in electronic trading on the New York Mercantile Exchange.

Other NYMEX energy sector April contracts:

Heating oil down 0.97 cent to $2.0740 a gallon.

Gasoline down 1.47 cents to $2.2415 a gallon.

Natural gas up 3.5 cents to $4.114 per 1,000 cubic feet.