Global Energy Prices – Crude Oil – Brent Oil – Natural Gas – Heating Oil All Easing

Brent oil recovered after touching a recent low to add 23 cents this morning as Asian traders took advantage of the weak price to buy on the cheap. Brent Sea oil closed at 107.71 and climbed to 107.94. WTI crude oil continues to ease trading at 101.11 headed for the upper $99 range. As the days of winter count by quickly and the severe winter weather dissipates extra residential demand for crude oil, heating oil and natural gas will begin to subside.

U.S. economic conditions in January and early February were difficult to discern due to severe cold temperatures and a series of storms that left much of the country trapped under snow and ice, the Federal Reserve reported Wednesday. In sector after sector and region after region, the weather played havoc on conditions, the report said. There were 119 separate mentions of the word “weather” in the Beige Book.

The most recent EIA report stated that residential heating oil prices decreased almost 2 cents per gallon to reach a price of nearly $4.23 per gallon during the period ending March 3, 2014. This is 15 cents per gallon higher than last year’s price at this time. Wholesale heating oil prices fell by less than 4 cents per gallon last week to nearly $3.36 per gallon. The average residential propane price decreased by almost 18 cents per gallon last week to $3.30 per gallon, less than 99 cents per gallon higher than the same period last year. Wholesale propane prices decreased by 33 cents per gallon to almost $1.51 per gallon as of March 3, 2014.

The US Department of Energy said the nation’s commercial crude-oil inventories rose by 1.4 million barrels in the week ending February 28. That was more than analysts’ consensus estimate of a 1.0 million barrel gain, indicating demand that was weaker than expected for the world’s largest crude-oil consumer. Independent analyst Andy Lipow said the build in crude was due to a slowdown of refinery activity during maintenance season, particularly along the Gulf Coast.

Distillate products, which include heating oil and diesel fuel, unexpectedly rose by 1.4 million barrels, instead of falling by 1.1 million as estimated. Crude futures also pulled back as fears of an immediate armed conflict between Russia and Ukraine cooled, but analysts said the presence of Russian-backed troops in Crimea in the country still lent price support.

Markets were also hit on Wednesday by fresh concerns over growth in China. China’s National People’s Congress began its annual meeting on Wednesday, with Premier Li Keqiang saying the government was targeting 7.5 growth in 2014, compared to the 7.7 per cent growth recorded in 2013 and 2012.

Natural gas is trading in the red this morning at 4.563 while heating oil recovered 27 points to trade at 2.9859 remaining well below its average range last week of over $3.02.