Crude oil futures prices rebounded on the New York market on July 16 after a weekly government inventory report showed a bigger drop in US oil supplies than analysts had expected.
JBC Energy said the 7.5-million bbl draw in oil inventories for the week ended July 11 was the biggest weekly drop in 6 months as reported by the Energy Information Administration (OGJ Online, July 16, 2014).
Refiners increased their processing volumes, and refining utilization was up by 2.2% from the previous week, EIA noted.
Regarding US underground natural gas storage in the Lower 48, EIA estimated working gas in storage at a rounded 2.1 tcf as of July 11. That represented a net increase of 107 bcf from the previous week.
Stocks were 608 bcf less than last year at this time and 727 bcf below the 5-year average of a rounded 2.86 tcf, the weekly gas storage report said on July 17.
In international news, US President Barack Obama on July 16 announced new sanctions against Russian state-controlled OAO Rosneft and three other companies because pro-Russian separatists resumed fighting in eastern Ukraine after a brief ceasefire fell apart.
Russia President Vladimir Putin warned that sanctions would have “a boomerang effect” and could drive “Russian-American relations to a dead end.” He said sanctions will prove to be “to the detriment of the long-term national interests of the American government and its people.”
Novatek is a gas company, and Gazprombank is a bank involved with Russia’s gas exports. VEB is a state-owned development lender. Novatek issued a statement calling itself a privately listed company that has no business activities in Ukraine.
The natural gas contract for August increased 2.2¢ to a rounded $4.12/MMbtu. On the US cash market, gas at Henry Hub, La., was $4.10/MMbtu, down 1¢.
Heating oil for August delivery edged up less than a penny to a rounded $2.86/gal. Reformulated gasoline stock for oxygenate blending for August delivery declined 1.6¢ to a rounded $2.88/gal.
The August ICE contract for Brent crude delivery was down 17¢ to $105.85/bbl. The September contract gained 29¢ to $107.17/bbl. The ICE gas oil contract for August added $8 to $881.50/tonne.
The Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes for July 16 was $104.44/bbl, up 79¢.
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