MARKET WATCH: Crude oil futures dip upon growing US inventory

Paula Dittrick
OGJ Senior Staff Writer

HOUSTON, July 30 -- US crude oil futures prices plummeted July 29 upon a government report of rising crude oil inventories. Analysts said higher inventory numbers caused them to worry about weakening oil demand.

“Oil prices took a trouncing,” Barclays Capital analysts said. The US Energy Information Administration reported a build of 5.1 million bbl in commercial inventories of benchmark crude oil.

The higher inventory figures were released “against a backdrop of weak macroeconomic data and regulatory uncertainties,” Barclays Capital said. Gary Gensler, chairman of the Commodity Futures Trading Commission, suggested imposing limits on speculative trading.

Barclays Capital analysts believe energy commodity prices could drop some more.

“There is a risk for yet another dislocation at the front end” of the West Texas Intermediate crude contract on the New York Mercantile Exchange, they said in a July 30 research note.

Energy prices
The September contract for benchmark US sweet, light crudes fell $3.88 to $63.35/bbl July 29 on the NYMEX. It was the biggest decline during a day’s trading session since Apr. 20. The October contract for sweet, light crudes also dropped sharply, down $3.75 to $65.23/bbl.

On the US spot market, WTI at Cushing, Okla., was down $3.88 to $63.35/bbl. Heating oil for August delivery decreased 9.3¢ to $1.67/gal on NYMEX. Reformulated blend stock for oxygenate blending (RBOB) for the same month was down 5.5¢ to $1.85/gal.

The August natural gas contract dropped 15.6¢ to $3.38/MMbtu on NYMEX, marking the contract’s lowest settle price in 10 days. On the US spot market, gas at Henry Hub, La., declined by 11¢ to $3.365/MMbtu.

In London, the September IPE contract for North Sea Brent crude dropped $3.35 to $66.53/bbl. August gas oil lost $21.75 to $543/tonne.

The average price for the Organization of Petroleum Exporting Countries' basket of 12 reference crudes was down $2.64 to $65.81/bbl on July 29.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

Financial questions seen for US shale gas, tight-oil plays

03/25/2014 Financial problems of operators in US shale gas and tight oil plays might hold production growth below current expectations, according to the autho...

MARKET WATCH: Front-month crude oil contract closes up, gas down on week

03/24/2014

The front-month crude oil contract ended the week higher Mar. 21 while natural gas futures prices edged slightly lower.

Industry group welcomes most UK budget moves

03/21/2014 Oil & Gas UK voiced support for all but one of several measures affecting the offshore producing industry announced in the UK government’s annu...

MARKET WATCH: Crude oil, gas futures prices slide entering spring

03/21/2014

The first day of spring in the northern hemisphere was marked by lower crude oil and natural gas futures prices.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected