MARKET WATCH: Oil benchmarks start week with gains
Crude oil prices gained on both the London and New York markets June 5, but Brent prices fell in June 6 trading on news reports that Venezuela state oil company Petroleos de Venezuela SA (PDVSA) might declare force majeure on some oil contracts.
S&P Global Platts reported late June 5 that PDVSA told eight customers it would be unable to meet its commitment to deliver 1.5 million b/d total in June because it only has 694,000 b/d available to export.
Meanwhile, Bloomberg reported the US government asked Saudi Arabia and some other members of the Organization of Petroleum Exporting Countries to increase oil production by about 1 million b/d.
OPEC is scheduled to meet in Vienna later this month where its members and other major producers, including Russia, will discuss production-cut targets.
The US Energy Information Administration was scheduled to release its weekly oil and product inventory report June 6. The American Petroleum Institute said late June 5 that its own data showed oil inventories fell by 2 million bbl for the week ended June 1.
The Wall Street Journal surveyed 11 analysts and traders who said they expect US oil inventories to have decreased by 1.9 million bbl during the week ended June 1.
Energy prices
The July light, sweet crude contract on the New York Mercantile Exchange rose 77¢ to settle at $65.52/bbl on June 5. The August price was up 78¢ to $65.46/bbl.
The NYMEX natural gas price for July fell 4¢ to a rounded $2.89/MMbtu. The Henry Hub cash gas price fell 4¢ to $2.87/MMbtu on June 5.
Ultralow-sulfur diesel for July declined 1¢ to a rounded $2.14/gal. The NYMEX reformulated gasoline blendstock for July fell a rounded 2¢ to settle at a rounded $2.11/gal.
Brent crude oil for August gained 9¢ to settle at $75.38/bbl on London’s International Commodity Exchange. The September contract was up 3¢ to $75.13/bbl. The gas oil contract for June was $657.50/tonne, down $8.25.
OPEC’s basket of crudes was $72.78/bbl on June 4, down 78¢.
Contact Paula Dittrick at [email protected].
About the Author
Paula Dittrick
Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.