Crude oil prices gained more than $1/bbl Aug. 2 to recoup the previous day’s losses on both the New York and London futures markets in a week marked by price volatility.
The Organization of Petroleum Exporting Countries and some non-OPEC producers, including Russia, agreed in late June to begin increasing production after holding back output by more than existing production-cut targets, which remain effective until Dec. 31.
OPEC said it will comply 100% with the production-cut target but no more than that. The cartel agreed to end overcompliance.
Separately, US natural gas futures prices gained Aug. 2 after the US Energy Information Administration reported a net increase of 35 bcf for underground gas storage for the week ended July 27.
The Weekly Natural Gas Storage Report said working gas in storage was 2.03 tcf, which was 688 bcf less than last year at this time and 565 bcf below the 5-year average.
Separately, US Department of Labor statistics released Aug. 3 show the US economy added 157,000 jobs in July while the unemployment rate fell to 3.9%. Analysts had anticipated the economy to have added 193,000 jobs.
Energy prices
The light, sweet crude contract for September delivery on the New York Mercantile Exchange jumped $1.30 to close at $68.96/bbl on Aug. 2. The October contract rose $1.16 to settle at $67.66/bbl.
The NYMEX natural gas price for September gained nearly 6¢ to a rounded $2.82/MMbtu. The Henry Hub cash gas price declined 1¢ to $2.79/MMbtu.
Ultralow-sulfur diesel for September increased 3¢ to a rounded $2.13/gal. The NYMEX reformulated gasoline blendstock for September was up 2¢ to a rounded $2.07/gal.
Brent crude oil for October increased $1.06 to $73.45/bbl on London’s International Commodity Exchange. The November contract gained $1.01 to settle at $73.68/bbl. The gas oil contract for August was $645.75/tonne, up $7.17.
The OPEC basket of crudes average price for Aug. 2 was $71.61/bbl, down 49¢.
Contact Paula Dittrick at [email protected].
