Light, sweet crude prices for June delivery jumped by more than $1/bbl in Apr. 26 trading. The momentum continued in early Apr. 27 trading with benchmark prices on the New York market reaching above $45/bbl for the first time this year.
The American Petroleum Institute estimated US crude oil inventories declined by 1.1 million bbl for the week ended Apr. 22. Separately, a consultant warned of a possible shortfall in world crude supply by 2035.
The US Energy Information Administration was scheduled to release its estimate later Apr. 27. Analysts polled by The Wall Street Journal expected crude stocks to have risen by 1.7 million bbl.
In a report, Wood Mackenzie Ltd. said the oil market could face supply shortfalls in the future unless oil exploration increases.
The world oil market could see a 4.5 million-b/d shortfall by 2035, WoodMac analysts said in a report released Apr. 27. A shortfall in supply would support higher oil prices in coming years.
WoodMac estimated more than 10% of world liquids supply by 2035 will come from conventional resources yet to be discovered, and analysts expect Africa, Latin America, and North America will account for around 60% of that future production.
The NYMEX natural gas contract for May dropped 31¢ to a rounded $2.03/MMbtu. The Henry Hub price was $1.88/MMbtu, down 9¢.
Heating oil for May delivery rose 4¢ to a rounded $1.33/gal. The price for reformulated gasoline stock for oxygenates blending for May climbed 5¢ to a rounded $1.56/gal.
The Brent crude contract for June on London’s ICE was up $1.26 to $45.74/bbl. The July contract declined $1.26 to $45.58/bbl. The gas oil contract for May was $397/tonne, up $1.25.
The average price for the OPEC’s basket of 13 benchmark crudes on Apr. 26 was $39.88/bbl, up 48¢.
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