Brent crude oil prices climbed early on Aug. 18 while US light, sweet crude declined as both moved toward another weekly loss.
Both crude benchmarks ended Aug. 17 higher, which Troy Vincent, oil analyst at ClipperData, attributed to “technical buying interest after breaking below the $47[/bbl] support level.”
Prices on Aug. 17 also were buoyed by a fire at Royal Dutch Shell PLC’s 340,000-b/d Deer Park, Tex., refinery, which caused the shutdown of its DU-2 crude distillation unit. As a result, the refinery’s fluidic catalytic cracking unit and coker were operating at reduced levels, according to a Reuters report.
Higher US crude production has weighed on oil prices for much of this week. The US Energy Information Administration said overall output rose last week to 9.5 million b/d, near the 2015 peak of 9.6 million b/d, the market impact of which more than offset a 9 million-bbl draw in US crude stockpiles.
Traders and market observers now await Baker Hughes’ latest count of US active rigs, an indicator of future output, set for release midday Aug. 18. Growth in the oil-directed count has slowed over the past 2 months.
Energy prices
The September light, sweet crude contract on the New York Mercantile Exchange gained 31¢ on Aug. 17 to settle at $47.09/bbl. The October contract was up 30¢ to close at $47.24/bbl.
The NYMEX natural gas price for September rose 3.9¢ to a rounded $2.93/MMbtu. The Henry Hub cash gas price was $2.88/MMbtu, down a penny.
Heating oil for September increased by less than a penny to a rounded $1.58/gal. Reformulated gasoline stock for oxygenate blending for September was up 2.3¢ to a rounded $1.59/gal.
The Brent crude contract for October on London’s ICE climbed 76¢ to $51.03/bbl. The November contract increased 65¢ to $50.75/bbl. The September gas oil contract was $464.75/tonne, down $5.50.
The Organization of Petroleum Exporting Countries’ basket of crudes on Aug. 17 was $48.07/bbl, down 62¢.
