The US and Brent crude oil futures benchmarks both ended June on a seven-session gaining streak. Light, sweet crude oil for August jumped more than $1 to settle above $46/bbl on June 30 while Brent gained 50¢ to close at nearly $48/bbl on the London market.
Brent’s gaining streak marked the longest since June 2014. The US benchmark experienced its longest gaining streak since August 2016.
Previously, oil prices had posted several consecutive monthly losses, which analysts attributed to concerns that rising US oil production might counteract production-cut targets set by the Organization of Petroleum Exporting Countries and other major producers.
The group in May extended existing production-cut targets of 1.8 million b/d through Mar. 31, 2018.
The US Energy Information Administration reported US oil production fell 100,000 b/d for the week ended June 23. It was the sharpest weekly drop for 2017 after a series of weekly production increases.
Some analysts took this as a sign that falling oil prices earlier this year might have slowed US production. The latest Baker Hughes Inc. count reinforced that notion.
For the week ended June 30, Baker Hughes reported the rig count fell by one unit after 23 consecutive weekly gains. Active rigs for the week ended June 30 totaled 940, representing the first rig count decline since Jan. 13. (OGJ Online, June 30, 2017).
Energy prices
The August light, sweet crude contract on NYMEX gained $1.11 on June 30 to settle at $46.04/bbl. The September contract was up $1.08 to close at $48.29/bbl.
The NYMEX natural gas price for August declined less than 1¢ to a rounded $3.03/MMbtu. The Henry Hub cash gas price dropped 6¢ to $2.94/MMbtu.
Heating oil futures for July added nearly 3¢ to a rounded $1.47/gal. Reformulated gasoline stock for oxygenate blending for July also jumped about 3¢ to $1.51/gal.
The Brent crude contract for August on London’s ICE increased 50¢ to $47.92/bbl while the September contract climbed $1.14 to $48.77/bbl. The July gas oil contract gained $1 to $436.50/tonne.
OPEC’s basket of crudes on June 30 was $45.63/bbl, up 27¢.
Contact Paula Dittrick at [email protected].