US crude oil prices fell about $1/bbl to settle below $50/bbl on Aug. 1 pending the release of weekly oil and product inventory reports from the US Energy Information Administration and the American Petroleum Institute.
Oil prices edged lower Aug. 2 awaiting EIA’s report. On Aug. 1, API said its own preliminary estimate shows US crude inventories rose 1.8 million bbl for the week ended July 28.
The Organization of the Petroleum Exporting Countries and some non-OPEC producers, including Russia, have agreed upon production-cut targets of 1.8 billion b/d that extend into first-quarter 2018. That targets became effective in January.
But crude prices have fallen nearly 10% in the last 6 months, which analysts attributed to investor worries that major oil producers are struggling to keep their promised production levels in efforts to support oil prices.
“Prices are running out of steam,” said Eugen Weinberg, a Commerzbank analyst. “The discipline of OPEC countries must be cast into question.”
Energy prices
The September light, sweet crude contract on the New York Mercantile Exchange dropped $1.01/bbl on Aug.1 to settle at $49.16/bbl. The October contract declined by 97¢ to close at $49.29/bbl.
The NYMEX natural gas price for September increased 2.5¢ to a rounded $2.82/MMbtu. The Henry Hub cash gas price fell 9¢ to $2.75/MMbtu.
Heating oil for September dropped 2.6¢ to a rounded $1.64/gal. Reformulated gasoline stock for oxygenate blending for September fell 1.5¢ to a rounded $1.66/gal.
The Brent crude contract for September on London’s ICE fell 94¢ to $51.78/bbl. The October contract was down 93¢ to $51.94/bbl.
The August gas oil contract declined $5.25 to $483.75/tonne. OPEC’s basket of crudes on Aug. 1 was $49.61/bbl, down 36¢.
Contact Paula Dittrick at [email protected].
