Crude oil futures settled lower June 4 on the New York market where the settlement has been lower than the previous day for five of seven trading sessions while crude oil futures on the London market also dropped, marking a fourth consecutive decline.
The Energy Information Administration said crude oil inventory levels declined 3.4 million bbl for the week ended May 30 because of high refinery demand and lower imports, yet overall US petroleum inventories, including products, rose 8.8 million bbl.
Working gas in storage was 1.49 tcf as of May 30, EIA said on June 5. This represents a net increase of 119 bcf from the previous week. Stocks were 737 bcf less than last year at this time and 896 bcf below the 5-year average of 2.395 tcf.
Separately, the Group of 7 (G7) leaders affirmed they are ready to intensify targeted sanctions and to add restrictive measures against Russia if conflict continues in Ukraine despite its recent presidential election. The G7 issued a joint statement following a June 4 meeting in Brussels.
German Chancellor Angela Merkel told a news conference that the West would check “again and again” for resolution to conflicts in eastern Ukraine between government troops and separatists.
“If we do not have progress in the questions we have to solve, there is the possibility of sanctions—even heavy sanctions of Phase 3 on the table,” Merkel said.
Meanwhile, analysts said oil traders appear for now to have shifted their focus from the Ukraine-Russia conflict to a meeting of the Organization of the Petroleum Exporting Countries scheduled for June 11 in Vienna.
The natural gas contract for July gained 1.1¢ to settle at a rounded $4.64/MMbtu on NYMEX. On the US cash market, gas at Henry Hub, La., fell 2¢ to $4.57/MMbtu.
Heating oil for July delivery lost 1.77¢ to a rounded $2.85/gal. Reformulated gasoline stock for oxygenate blending for July delivery fell 1.35¢ to remain at a rounded $2.93/gal.
The July ICE contract for Brent crude delivery dropped 42¢, closing at $108.40/bbl, while the August contract declined 41¢ to settle at $107.72/bbl. The ICE gas oil contract for June gave up 75¢ to settle at $883.75/tonne.
OPEC’s basket of 12 benchmark crudes was $105.56/bbl on June 4, up 42¢.
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