MARKET WATCH: Oil prices rise on US economic outlook

Oil prices rose July 31 in New York and London markets, which analysts attributed to positive US economic indicators and suddenly tightening world oil supplies.

Federal Reserve officials ended a 2-day meeting in Washington, DC, on July 31, saying they will continue a program that buys $85 billion/month in Treasuries and mortgage-backed securities.

That stimulus boosts crude oil prices by weakening the dollar, making US crude cheaper to buy using other currencies.

In mixed signals regarding the economic outlook, Fed officials said they expect “economic growth will pick up from its recent pace.”

The US Department of Commerce said July 31 that the economy grew by 1.7%/year in the second quarter, better than a revised 1.1%/year for the first quarter.

Analysts await the Aug. 2 release of US employment statistics for July for hints about future energy demand.

Meanwhile, oil prices worldwide rose after Libyan officials reported a sharp decline in exports caused by protesters blocking shipments from various ports.

Energy prices

The September contract for benchmark US light, sweet crudes gained $1.95 to $105.03/bbl July 301 on the New York Mercantile Exchange. The October contract climbed $1.72 to $104.22/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up $1.95 to $105.03/bbl.

Heating oil for August delivery gained 3¢ to $3.04/gal on NYMEX. Reformulated stock for oxygenate blending for the same month climbed 2¢ to $3.04/gal.

The new front-month September natural gas contract gained 1.4¢ to $3.44/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., declined 1.4¢ to $3.44/MMbtu.

In London, the September IPE contract for North Sea Brent was up 79¢ to $107.70/bbl. Gas oil for August increased $2.50 to $910.50/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes rose 5¢ to $104.97/bbl.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

Judge bars Anadarko e-mails as evidence in Macondo blowout hearing

03/21/2014 A federal district judge in New Orleans refused to accept e-mails between Anadarko Petroleum Corp. and BP PLC as evidence in a hearing to determine...

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.

OMV acquires West of Shetland licenses from Hess

03/21/2014 OMV AG has reached an agreement with Hess Corp. to acquire four licenses in West of Shetland, UK, including Cambo field and the Blackrock prospect,...

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