By the OGJ Online Staff
HOUSTON, July 11 -- International future prices for oil and refined products continued to decline in anticipation of a bearish report Tuesday of increased US inventories.
Markets also were affected by news that Iraq is poised to resume oil exports through the Mediterranean port of Ceyhan in Turkey.
Following close of trade Tuesday on the New York Mercantile Exchange, the American Petroleum Institute reported that US oil stocks increased by 909,000 bbl last week to 310.4 million bbl. Another 382,000 bbl of gasoline were added, increasing that inventory to 220.7 million bbl. Distillate stocks jumped by 3.4 million bbl to 116.4 million bbl total.
The August contract for benchmark US sweet, light crudes dropped 10¢ to $27.49/bbl Tuesday on the NYMEX, while the September contract retreated 11¢ to $27.08/bbl. Both contracts continued to decline in after-hours electronic trading to $27.22/bbl and $26.78/bbl, respectively.
Unleaded gasoline for August delivery tumbled down 2.23¢ to 72.71¢/gal, and home heating oil for the same month dipped 0.46¢ to 72.33¢/gal. However, the August contract for natural gas gained 12.9¢ to $3.28/Mcf.
In London, futures prices for North Sea Brent crude were little changed prior to midday reports that Iraq is ready to resume exports. Then aggressive selling pushed prices below the $26/bbl mark shortly before the close of trade on the International Petroleum Exchange.
The August Brent oil contract settled at $25.93/bbl, down 22¢ for the day, after trading in the range of $25.75-$26.26/bbl on the IPE. The August natural gas contract inched up 3.2¢ to the equivalent of $2.59/Mcf.
The average price for the Organization of Petroleum Exporting Countries' basket of seven crudes lost 61¢ to $24.11/bbl on Tuesday.
