Light, sweet crude oil prices fell by more than $1/bbl for both the July and August contracts on the New York market May 31, but the Brent contract for July gained more than $1/bbl in London.
A US weekly government report showed a larger-than-expected decrease in US crude oil supplies. But traders appeared to be focused on the fate of production-cut targets by the Organization of Petroleum Exporting Countries and other major producers, including Russia.
OPEC has a June 20-21 meeting scheduled in Vienna. Saudi Arabia officials have said they are considering easing supply curbs, but other OPEC members, particularly Iran and Kuwait, disagree with that suggestion.
US commercial crude oil inventories, excluding the Strategic Petroleum Reserve, dropped 4.2 million bbl for the week ended May 25 compared with the previous week’s total, the US Energy Information Administration reported. The latest estimated total was 434.5 million bbl (OGJ Online, June 1, 2018).
EIA’s Weekly Petroleum Status Report also said US oil production gained 44,000 b/d for the week ended May 25 to 10.769 million b/d. Production across the Lower 48 gained 20,000 b/d to 10.265 million b/d while Alaska’s production gained 24,000 b/d to 504,000 b/d.
Energy prices
The July light, sweet crude contract on the New York Mercantile Exchange fell $1.17 to settle at $67.04/bbl on May 31. The August price also was down $1.17 to $66.91/bbl.
The NYMEX natural gas price for July gained 7¢ to a rounded $2.95/MMbtu. The Henry Hub cash gas price gained 5¢ to $2.89/MMbtu on May 31.
Ultralow-sulfur diesel for June declined 4¢ to a rounded $2.19/gal. The NYMEX reformulated gasoline blendstock for June fell 2¢ to settle at $2.16/gal.
Brent crude oil for July gained $1.09 to settle at $77.99/bbl on London’s International Commodity Exchange. The August contract was down 16¢ to $77.56/bbl. The gas oil contract for June was $685.50/tonne, up 75¢.
OPEC’s basket of crudes was $75,17/bbl on May 31, down $1.45.
Contact Paula Dittrick at [email protected].
