The light, sweet crude oil contract for August delivery reached its highest level since November 2014, settling above $74/bbl on the New York market June 29 while Brent crude oil for August delivery settled at nearly $80/bbl in London.
Analysts attribute rising prices to concerns about disruptions to oil supply from Canada, Libya, Venezuela, and Iran. Syncrude Canada Ltd. said production has stopped at its Mildred Lake oil sands complex near Fort McMurray, Alta., because of a June 20 power outage that shut down all processing units. It’s unknown yet when the oil sands complex will return to service (OGJ Online, July 26, 2018).
Meanwhile, US President Donald Trump said in a Twitter post on June 30 that he asked Saudi Arabia to increase its oil production. Trump wants lower oil prices. He also is advancing plans for US unilateral sanctions against Iran, effective Nov. 4, which will reduce that nation’s oil exports.
Saudi Arabia, the biggest producer within the Organization of Petroleum Exporting Countries, OPEC, and Russia previously said they would work together to boost production. OPEC recently said it was maintaining its production-cut targets, but that the cartel collectively no longer will curb production more than the already specified total 1.2 million b/d, meaning increased production from OPEC members who have spare capacity.
Energy prices
The August light, sweet crude contract gained 70¢ to settle at $74.15/bbl on June 29. The September price was up 65¢ to $72.46/bbl.
The NYMEX natural gas price for August decreased 1.6¢ to a rounded $2.92/MMbtu. The Henry Hub cash gas price dropped 7¢ to $2.90/MMbtu on June 29.
Ultralow-sulfur diesel for July increased 3¢ to a rounded $2.21/gal. The NYMEX reformulated gasoline blendstock for July edged up less than 4.6¢ to remain at a rounded $2.18/gal.
Brent crude oil for August climbed $1.59 to $79.44/bbl on London’s International Commodity Exchange. The September contract increased $1.62 to $79.23/bbl. The gas oil contract for July was $675.75/tonne, up $10.50.
The OPEC basket of crudes average price was unavailable because the OPEC Secretariat office was closed June 29 and July 2.
Contact Paula Dittrick at [email protected].
