Petroleum marketing monthly Page: 13 of 207
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Highlights
I nternational crude oil prices continued on a strong
upward path through the first half of April but lost
momentum during the latter part of the month. In
Europe and Asia, a build in crude oil stocks and other
finished products during March and April along with
an increase in North Sea and Russian wellhead pro-
duction levels during April helped calm market
prices. As the lengthy, record-setting 1995-96 winter
season finally wound down, the accompanying de-
mand for heating fuels also faded and allowed a
switch over to higher gasoline production rates in all
industrialized regions of the world. Finally, by
month's close, the U.N./Iraq negotiations for emer-
gency sales of Iraqi crude still had yielded no agree-
ment, but arrangements were made for talks to
resume in May.The continued influence of thin st
oil and the principal petroleum
marked volatility in U.S. spot
markets during April. In Cali-
fornia, the stringent anti-pol-
lution CARB Phase II
gasoline became required at
the rack level. Rising prices
were expected as this unique
gasoline was introduced into
the marketplace, but the situ-
ation was severely aggra-
vated by unexpected refinery
outages at various refining fa-
cilities. Over the course of
April, prices in the Los Ange-
les spot market rose dramati-
cally, finally spiking to $1.00
or more per gallon by the end
of the month. As concern over
spiraling gasoline prices
mounted, President Clinton
authorized the release of 12
million gallons of crude oilfrom the U.S. Strategic Petroleum Reserve (SPR) fa-
cility at Weeks Island, Louisiana. In spite of the prob-
lems on the West Coast, preliminary estimate data
show that overall U.S. production and imports of
both gasoline and distillate fuel oil exceeded demand
for the first time in 2 months. Additionally, prelimi-
nary estimates indicate the overall U.S. refinery utili-
zation rate improved by approximately 2 percent
during the course of April. However, current esti-
mates indicate an approximate 6.5 percent drop in
overall stocks (excluding SPR) and 2.0 percent drop
in gasoline stocks from year ago levels as the summer
driving season looms closer.
April market and sales activity for crude oil and the
principal petroleum products are summarized in the
following sections.ock levels for crude
m products causedEnergy Information Administration / Petroleum Marketing Monthly July 1996 9
Figure HL1. Crude Oil and Petroleum Product Wholesale Prices
120
Motor Gasoline No. 2 Distillate Residual Fuel Oil Crude Oil RAC
x 100
80
a 40 .. ...-- _.--.. ..
- ---------------
- 20
20 -L
0)
N D J F M A M J J A S O N D J F M A
November 1994 - April 1996
Sources: Energy Information Administration. Crude oil refiner acquisition cosh: Form EIA-14.
"Refiners' Monthly Cost Report"; petroleum product prices: Form EIA-782A, 'Refiners'/Gas Plant Opera-
tors' Monthly Petroleum Product Sales Report."xliil
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Petroleum marketing monthly, report, July 1, 1996; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc672349/m1/13/: accessed April 18, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.