Light, sweet crude oil for June delivery settled above $49/bbl May 17 after a weekly government report showed a decline in US oil production as well as a drop in the US oil supplies. The inventory dropped less than analysts had expected.
The US Energy Information Administration said crude oil inventories fell 1.8 million bbl for the week ended May 12 (OGJ Online, May 17, 2017).
The Wall Street Journal’s survey of 13 analysts had anticipated a decrease of 2.2 million bbl.
The Petroleum Status Report showed a drop in weekly US oil production—its first decline in 13 weeks.
EIA said total US oil production was 9.305 million b/d for the week ended May 12, a decline of 9,000 b/d. Alaska’s production fell by 21,000 b/d to 510,000 b/d while Lower 48 production grew by 12,000 b/d to 8.795 million b/d.
US production had been rising steadily since January, reaching its highest level since August 2015 at 9.31 million b/d for the week ended May 5.
Energy prices
The light, sweet contract for June crude oil delivery gained 41¢ to close at $49.07/bbl on the New York Mercantile Exchange May 17. The July contract also gained 41¢ to settle at $49.41/bbl.
The natural gas price for June was down nearly 4¢ to a rounded $3.19/MMbtu. The Henry Hub cash gas price was down 7¢ to $3.16/MMbtu on May 17.
Heating oil for June increased nearly 2¢ to a rounded $1.53/gal. Reformulated gasoline stock for oxygenate blending for June edged down less than 1¢ to remain at a rounded $1.60/gal.
The Brent crude contract for July on London’s ICE was up 56¢ to $52.21/bbl. The August contract was up 53¢ to $52.44/bbl. The June gas oil contract was $463.50/tonne, up $5.50.
The Organization of Petroleum Exporting Countries’ basket of crudes was $49.43/bbl on May 17, down 28¢.
Contact Paula Dittrick at [email protected].
