Review of oil prices 2014

• Date: 01 July 2015
• Published date: 01 July 2015
• DOI: http://doi.org/10.1111/oets.00046

First quarter 2014

28 December-3 January

Friday close: $106.57

Crude oil prices drifted downwards

in thin trade as some traders chose to

sit-out the Christmas and New Year

holidays. Brent prices lost $1/bbl on

reports that Libya had restarted oil

production at two fields shut-in by

strikes and civil unrest. There were

further falls in light, sweet crude

prices later in the week as another

Libyan oilfield was reported back on

-line. The bearish tone was rein-

forced by rising stock levels, weak

demand across the Atlantic Basin

and low buying activity in Asia.

Refined products took their cue from

crude and also declined.

4-10 January

Friday close: $106.44

Crude oil prices rose early in the

week before falling back; rising

again to finish little changed on the

week. The mid-week fall was trig-

gered by reports that Iran’s crude oil

exports were about to rise, and an

increase in US inventory levels.

Refinery demand was low amid

reports of temporary closures and

reduced runs at large US refineries.

Prices recovered slightly after a brief

production outage at the UK’s Buz-

zard oilfield—the principal contribu-

tor to the North Sea Forties blend—

causing prompt Brent futures to

finish the day 86 cents higher on

Friday. Sour crudes weakened on

low demand in Asia, where mild

weather cut demand for middle dis-

tillate and low sulphur fuel oil.

Heating oil prices in Europe were hit

by mild weather.

11-17 January

Friday close: $108.45

Crude prices rose steadily during the

week on optimism about economic

growth in the UK and US following

the release of data on retail sales and

industrial production. These factors

offset bearish news early in the

week as Libyan oil production con-

tinued to rise and output at the UK’s

Buzzard field was restored. In Asia,

falling temperatures boosted demand

for low sulphur fuel oil and heavy,

sweet crudes, such as Minas, which

also received support from a short-

age of the similar Nile Blend crude

from South Sudan, caused by unrest

there. An Indian refiner bought

heavy, sweet crude from Argentina

in an attempt to replace lost Nile

Blend imports. Asian refined prod-

uct prices rose on strong Chinese

demand.

18-24 January

Friday close: $109.14

Markets began the week in bullish

mood on renewed optimism about

economic growth across all major

markets, taking North Sea Dated

prices up by nearly $2.40/bbl at one

stage, before concerns about growth

in some emerging markets caused a

sell-off on futures markets in Lon-

don and New York. Production

problems in Canada and a drop in

Mexican exports helped to strength-

en US and Latin American prices.

Product prices went up, led by mid-

dle distillate both in Atlantic and

Asian markets. Maintenance at

Venezuela’s 635,000 bpd Amuay

refinery cut supplies to the region,

forcing up middle distillate prices

across the Caribbean. Naphtha rose

strongly in Asia.

25-31 January

Friday close: $108.16

Crude oil prices eased, led by Brent

and West Texas Intermediate (WTI).

Sour crudes proved slightly more

resilient thanks to demand from

markets east of Suez. The down-

ward move reflected concerns that

arose late in the previous week over

growth prospects in some emerging

markets, and new concerns over

economic growth in the eurozone.

A rise in exports of gasoil and jet

fuel from Japan indicated weak de-

mand for middle distillate there, and

Asian prices were pressurized fur-

ther by the arrival of gasoil cargoes

from the Persian Gulf in Singapore.

US prices, on the other hand, rose in

response to low temperatures in

many northern states.

1-7 February

Friday close: $110.12

Tight sweet crude supplies and con-

tinuing low US temperatures lent a

firm tone to Brent and WTI markets

despite some weakness early in the

week due to low refinery demand.

A fall in Libyan supplies raised in-

terest in Saharan Blend from refiner-

ies in East Asia, where there was

also good demand for West African

grades. Storms in the Black Sea

interrupted exports of Urals,

strengthening sour crudes in Europe.

A fall in US imports of sour blends

helped to strengthen domestic sour

crudes such as Mars. Refinery

maintenance in the US boosted

product prices there, as did opti-

mism about the economy.

8-14 February

Friday close: $108.63

Tight North Sea supplies strength-

ened Brent on both the cash and

futures markets, and there was fur-

ther support for sweet crude prices

from a drop in exports from Angola

and Libya, where rebel groups dam-

aged two pipelines supplying the

export terminals at Zawiya and

Mellitah. Asian demand for sweet

crudes boosted prices for lighter

grades, such as Nigeria’s Qua Iboe

and heavier blends from South East

Asia. Asian demand also supported

the price of Caspian. Weak Europe-

an demand and plentiful supplies of

Persian Gulf crudes limited any rise

in sour crude prices, which were

stronger in the Americas where both

local crudes and Persian Gulf im-

ports were in short supply. Product

prices on both sides of the Atlantic

strengthened on low inventories, low

US temperatures and refinery

maintenance shutdowns but weak-

ened later in the week.

15-21 February

Friday close: $109.03

North Sea oil prices staged a minor

recovery on fears of further reduc-

tions in Libyan exports and reports

of lower supplies from Azerbaijan.

Sour crudes fared rather better on

strong Asian demand and a drop in

REVIEW OF OIL PRICES 2014

Oil and Energy Trends: Annual Statistical Review

© John Wiley & Sons Ltd 2015

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