Light, sweet crude oil prices gained modestly on the New York market July 10 as did Brent prices on the London market, which analysts attributed to reports the Organization of Petroleum Exporting Countries might suggest Nigeria and Libya curb oil production.
Both are OPEC members, but they were exempted from the OPEC agreement to cut production by 1.2 million b/d. The exemptions for Libya and Nigeria are expected to be discussed when the cartel’s monitoring panel meeting July 24 in Moscow.
Other non-OPEC producers agreed to cut production by about 600,000 b/d for total production-cut targets of 1.8 million b/d. Those targets were extended through March 2018. OPEC is scheduled to release its monthly Oil Market Report on July 12.
“The situation remains unstable,” said Eugen Weinberg, Commerzbank head of commodity research. He said markets remain “a bit on the bearish side.”
Energy prices
The August light, sweet crude contract on NYMEX dropped 17¢ on July 10 to settle at $44.40/bbl. The September contract was up 21¢ to close at $44.60/bbl.
The NYMEX natural gas price for August gained 6.5¢ to a rounded $2.93/MMbtu. The Henry Hub cash gas price was $2.91/MMbtu, up 2¢.
Heating oil futures for August edged up less than a penny to remain at a rounded $1.45/gal. Reformulated gasoline stock for oxygenate blending for August rose a fraction of 1¢ to a rounded $1.50/gal.
The Brent crude contract for September on London’s ICE gained 17¢ to $46.88/bbl while the October contract was up 19¢ to $47.17/bbl. The July gas oil contract was up $5.50 to $433.25/tonne.
OPEC’s basket of crudes on July 10 was $44.77/bbl, down 34¢.
Contact Paula Dittrick at [email protected].