Light, sweet crude oil contracts gained more than $1/bbl July 30 on the New York market, which analysts attributed to concerns about risks to world oil supply, including crude exports from Iran and Venezuela.
The September contract settled above $70/bbl. While the front-month contract rose in 7 of the last 10 sessions, it had not ended a trading session closing up by more than $1/bbl since June 27.
Reuters reported its own survey indicates the Organization of Petroleum Exporting Countries increased output by 70,000 b/d in July compared with June production growth of 173,000 b/d.
ING Bank analysts said market participants expect US crude oil stockpiles to have fallen by about 3 million bbl for the week ended July 27. The American Petroleum Institute is scheduled to release its weekly inventory report later July 31.
In May, Trump announced a US exit from an international agreement in which sanctions were lifted against Iran in exchange for cooperation on its nuclear program. Oil prices strengthened after that announcement on expectations of less Iranian oil available to world markets.
US unilateral sanctions against Iran are scheduled to become effective Nov. 4.
Crude oil prices fell in early trading on July 31 in New York after US President Donald Trump said he would be willing to meet with Iranian President Hassan Rouhani. Previously, Trump had threatened Rouhani after he commented about possible disruptions to a major oil transportation route.
Commerzbank analysts said Trump’s comment about a meeting with Rouhani might be pressuring crude prices downward.
Energy prices
The light, sweet crude contract for September delivery on the New York Mercantile Exchange gained $1.44 to close at $70.13/bbl on July 30. The October contract rose $1.22 to settle at $68.95/bbl.
The NYMEX natural gas price for September gained 1.5¢ to a rounded $2.80/MMbtu. The Henry Hub cash gas price fell 2¢ to $2.76/MMbtu.
Ultralow-sulfur diesel for August climbed nearly 2¢ to a rounded $2.17/gal. The NYMEX reformulated gasoline blendstock for August edged down less than 1¢ to remain at $2.16/gal.
Brent crude oil for September rose 68¢ to $74.97/bbl on London’s International Commodity Exchange. The October contract gained 79¢ to settle at $75.55/bbl. The gas oil contract for August was $662.75/tonne, down $3.
The OPEC basket of crudes average price for July 30 was $73.53/bbl, down 16¢.
Contact Paula Dittrick at [email protected].
