Crude Oil --
December 2013 WTI crude oil opened today at $93.74. Resistance lies at $98.82 and $100.95. A violation of those levels would make $103.34 bulls next target. Next support is at $92.67 and below that, $91.25. A violation of these levels would suggest downside potential to April 15's low at $85.61.
U.S. crude inventories firmed 1.6 million barrels to 385.4 million barrels -- now 10.6 million barrels above year-ago.
December 13 Brent crude oil futures opened today at $105.88 and spent most of the day chopping sideways. Next support lies at $105.39 and $105.16. A move below those levels would suggest downside potential to $105 and psychological $100. Resistance lies at $109.26 and $110.65.
The WTI/Brent crude spread widened $1.18 on the week to $12.14 at the open, with Brent on top.
Home Heat --
Heating oil and propane both move higher on the week.
Residential heating oil prices increased by nearly a cent per gallon last week during the period ending November 4, 2013 to reach a price just shy of $3.83 per gallon. This is 18 cents per gallon lower than the price at the same time last year. Wholesale heating oil prices decreased by 1 cent per gallon, arriving at $3.00 per gallon.
The average residential propane price increased by over 4 cents per gallon last week to reach $2.45 per gallon, 21 cents per gallon higher than the same period last year. Wholesale propane prices increased by 5 cents per gallon to reach a price near $1.37 per gallon as of November 4, 2013, according to EIA.
Gasoline, Highway Diesel and #2 all softer on the week.
The U.S. average retail price of regular gasoline decreased three cents to $3.27 per gallon as of November 4, 2013, a new low for the year, and 23 cents lower than last year at this time. Prices fell in all regions of the nation for the second consecutive week, with the largest decrease coming in the Rocky Mountains, where the price dropped six cents to $3.31 per gallon. The West Coast price was $3.56 per gallon, a decline of five cents from last week, and the Gulf Coast price was $3.03 per gallon, a decrease of four cents. On the East Coast the price fell three cents to $3.29 per gallon, and the Midwest price was lower by a penny at $3.19 per gallon.
The national average diesel fuel price fell one cent to $3.86 per gallon, 15 cents lower than last year at this time, and the lowest price since July 8, 2013. The West Coast price was $4.02 per gallon, two cents lower than last week, while prices in all other regions declined by a penny. The East Coast price was $3.88 per gallon, the Midwest price was $3.83 per gallon, the Gulf Coast price was $3.77 per gallon, and the Rocky Mountain price was $3.86 per gallon, according to EIA.
Farm Diesel softened 2 1/2 cents on the week, currently at $3.447. We have added EIA's home heat report which runs Oct. 1-March. Farm diesel is in direct competition with #2 heating oil through the winter months and a stress on #2 supplies will impact farm diesel pricing. This week's lowest farm diesel was reported in the state of Missouri at $3.34/gallon with the high mark in Illinois at $3.59.
U.S. propane stocks fell by 2.7 million barrels to end at 62.1 million barrels last week, 11.6 million barrels (15.7%) lower than a year ago. Midwest regional inventories dropped by 2.1 million barrels, and Gulf Coast inventories declined by 0.5 million barrels. Inventories on the East Coast decreased by 0.2 million barrels, while stocks in the Rocky Mountain/West Coast region were unchanged from previous week.
Propylene non-fuel-use inventories represented 4.5% of total propane inventories, according to EIA..
LP moved 3/4 cent higher in this week's Inputs Monitor Index to $1.583. The lowest priced LP in our index is in South Dakota at $1.38 while the high mark is at $1.89 in Indiana.
The national distillate supply fell 4.9 million barrels to 117.8 -- 0.2 million barrels below year-ago.
Graphs and indicated text provided by EIA.