MARKET WATCH: Crude oil prices end week higher after IEA demand forecast

Aug. 13, 2018
Light, sweet crude oil prices for September delivery rose to close above $67.60/bbl on the New York market Aug. 10 while Brent crude for October also gained to close above $72.80/bbl. Analysts attributed the gains to the International Energy Agency’s oil demand growth forecast.

Light, sweet crude oil prices for September delivery rose to close above $67.60/bbl on the New York market Aug. 10 while Brent crude for October also gained to close above $72.80/bbl. Analysts attributed the gains to the International Energy Agency’s oil demand growth forecast.

IEA forecast 2019 world oil demand growth of 1.5 million b/d. In its latest Oil Market Report, IEA left its 2018 world demand growth outlook unchanged at 1.4 million b/d (OGJ Online, Aug. 10, 2018).

Analysts also said crude prices rose after a sharp increase in the US rig count. Baker Hughes weekly statistics show the rig count jumped 13 to reach 1,057 units working for the week ended Aug. 10. The count is up 90 units from this time a year ago when the count stood at 954 (OGJ Online, Aug. 10, 2018).

Separately, the Organization of Petroleum Exporting Countries on Aug. 13 issued its Oil Monthly Market Report, saying the cartel’s overall production rose by 41,700 b/d in July even as production in Saudi Arabia declined.

OPEC’s July crude oil production averaged 32.32 million b/d, the cartel said, citing secondary sources. The increase came from higher production in Kuwait, Nigeria, the UAE, and Iraq.

Saudi Arabian crude output fell by nearly 53,000 b/d in July, secondary sources said. Saudi Arabia directly told OPEC that Saudi production fell by 200,000 b/d to a rounded 10.29 million b/d.

Energy prices

The light, sweet crude contract for September delivery on the New York Mercantile Exchange gained 82¢ to close at $67.63/bbl on Aug. 10. The October contract increased 80¢ to settle at $66.94/bbl.

The NYMEX natural gas price for September fell 1¢ to a rounded $2.94/MMbtu. The Henry Hub cash gas price declined 6¢ to $2.92/MMbtu.

Ultralow-sulfur diesel for September increased nearly 3¢ to a rounded $2.14/gal. The NYMEX reformulated gasoline blendstock for September rose nearly 4¢ to a rounded $2.04/gal.

Brent crude oil for October increased 74¢ to $72.81/bbl on London’s International Commodity Exchange. The November contract rose 72¢ to settle at $73.11/bbl. The gas oil contract for August was $656.50/tonne, up $9.25.

Contact Paula Dittrick at [email protected].