Light, sweet crude oil prices rose for a fifth consecutive day on the New York market July 14 as the US dollar’s value fell against other currencies. The US benchmark oil price settled above $46/bbl for a second consecutive day.
Oil prices traded flat early July 17 on news that the Organization of Petroleum Exporting Countries scheduled a staff meeting.
National representatives reportedly attended a July 17 meeting in Vienna to discuss administrative details although specifics were not given. The meeting comes amid growing pessimism about OPEC’s ability to influence oil prices with production-cut targets.
The US dollar declined July 14 after US data showed inflation was flat in June compared with May, indicated that inflation remains soft. Analysts said they could be an obstacle for the US Federal Reserve’s plans to raise interest rates.
The Wall Street Journal Dollar Index slid 0.67%, to 87.32. The index tracks the US dollar’s value against more than a dozen other currencies. Oil is traded in dollars so a weakening dollar makes oil less expensive to non-US buyers using other currencies.
On world oil markets, the Brent crude benchmark gained July 14 after Royal Dutch Shell PLC in Nigeria declared a force majeure on Bonny light crude exports from Nigeria, following a pipeline shut down.
Meanwhile, the International Energy Agency said China’s oil demand is growing. During the first half, China imported an average 8.6 million b/d.
Energy prices
The August light, sweet crude contract on NYMEX gained 46¢ on July 14 to settle at $46.54/bbl. The September contract was up 50¢ to close at $46.75/bbl.
The NYMEX natural gas price for August rose nearly 2¢ to $2.99/MMbtu. The Henry Hub cash gas price was $2.93/MMbtu, down 1¢.
Heating oil futures for August gained 2¢ to a rounded $1.51/gal. Reformulated gasoline stock for oxygenate blending for August gained 3.4¢ to a rounded $1.56/gal.
The Brent crude contract for September on London’s ICE gained 49¢ to $48.91/bbl while the October contract was up 49¢ to $49.17/bbl. The August gas oil contract was $447.75/tonne, up $4.50.
OPEC’s basket of crudes on July 14 was $46.40/bbl, up 85¢.
Contact Paula Dittrick at [email protected].