Light, sweet crude oil prices for August and September delivery made gains July 13 for the fourth consecutive trading session. Prices appeared to be holding steady on July 14 although the US benchmark slipped slightly in early trading.
Analysts said price support stemmed from a larger-than-expected draw in US crude oil inventories for the week ended July 7.
In addition, the International Energy Agency said it now expects global oil demand to increase 1.5% this year to 98 million b/d (OGJ Online, July 13, 2017).
World oil supply rose 720,000 b/d in June over May to 97.46 million b/d total for June, the July Oil Market Report (OMR) said.
Paris-based IEA raised its 2017 oil demand forecast by 100,000 b/d compared with a previous estimate last month, while predicting similarly growth next year.
“Each month, something seems to come along to raise doubts about the pace of the rebalancing process,” IEA’s report noted.
Currently, some members of the Organization of Petroleum Exporting Countries have expressed concerns about the recovery of production in Libya and Nigeria—two OPEC members that were exempted from the production-cut targets.
Separately, the Baker Hughes Inc. rig count was scheduled to be released later July 14. It is closely watched as an indicator for future production.
Energy prices
The August light, sweet crude contract on NYMEX gained 59¢ on July 13 to settle at $46.08/bbl. The September contract was up 59¢ to close at $46.25/bbl.
The NYMEX natural gas price for August fell 2¢ to $2.96/MMbtu. The Henry Hub cash gas price was $2.94/MMbtu, down 4¢.
Heating oil futures for August gained nearly 2¢ to a rounded $1.49/gal. Reformulated gasoline stock for oxygenate blending for August edged up less than a penny to remain at a rounded $1.52/gal.
The Brent crude contract for September on London’s ICE gained 68¢ to $48.42/bbl while the October contract was up 65¢ to $48.68/bbl. The August gas oil contract was $443.25/tonne, up $6.
OPEC’s basket of crudes on July 13 was $45.66/bbl, down 36¢.
Contact Paula Dittrick at [email protected].