Oil prices rose modestly on the New York market Aug. 11 while analysts awaited the Aug. 12 release of monthly reports from the International Energy Agency and US Energy Information Administration.
On Aug. 8, the Organization of Petroleum Exporting Countries released a monthly oil market report that showed OPEC production reached its highest level in 5 months during July because Libya negotiated the reopening of oil export terminals and oil fields.
In its monthly report, OPEC said Libya’s production rose 200,000 b/d in July, boosting OPEC’s production by 167,000 b/d to a total of 29.9 million b/d.
Libya’s government and rebel forces agreed to reopen ports and oil fields that had been closed for almost a year (OGJ Online, July 8, 2014).
Barclays analyst Miswin Mahesh noted that “upside price risks” continue because uncertain political situations exist in Ukraine, Iraq, and elsewhere.
“Despite a weaker supply-demand picture, expected increase in exports from Libya will likely prove unreliable, and geopolitical risk continues to mount in Iraq as the Islamic State gains more ground,” Mahesh said in a weekly research report.
The natural gas contract for September climbed less than a penny to a rounded $3.97/MMbtu. On the US cash market, gas at Henry Hub, La., was $3.95/MMbtu, up 4¢.
Heating oil for September delivery edged up by less than a penny to a rounded $2.88/gal. Reformulated gasoline stock for oxygenate blending for September delivery edged down by a fraction of a penny to remain a rounded $2.75/gal.
The September ICE contract for Brent crude delivery dropped 34¢ to $104.68/bbl. The October contract declined 23¢ to $105.39/bbl. The ICE gas oil contract for August was up $4 to $883.75/tonne.
The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes was $103.10/bbl on Aug. 11, down 81¢.
Contract Paula Dittrick at email@example.com.