Light, sweet crude oil contracts for September and October deliveries dropped more than $1/bbl for the second consecutive day Aug. 1 on the New York market. Brent crude oil for October delivery dropped by more than $1.80/bbl to settle above $72/bbl in London.
Oil futures fell to the lowest level in nearly 6 weeks after the US Energy Information Administration reported crude oil inventories, excluding the Strategic Petroleum Reserve, increased by 3.8 million bbl for the week ended July 27 to 409 million bbl (OGJ Online, Aug. 1, 2018).
At 408.7 million bbl, US crude oil inventories are about 1% below the 5-year average for this time of year, EIA said. Traders and analysts surveyed by The Wall Street Journal before the weekly report had expected an average weekly decline of 2.2 million bbl.
ING Bank analysts said, “The [inventory] build was driven by lower crude oil exports, which fell by 1.37 million b/d week-on-week.”
EIA’s Weekly Petroleum Status Report showed US oil production fell by 100,000 b/d for the week ended July 27 to 10.8 million b/d. Production had held steady at 11 million b/d for the 2 previous weeks.
For the week ended July 27, production across the Lower US oil held steady with the previous week at 10.6 million b/d while Alaska production fell by 68,000 b/d from the previous week to 331,000 b/d.
Energy prices
The light, sweet crude contract for September delivery on the New York Mercantile Exchange declined $1.10 to close at $67.66/bbl on Aug. 1. The October contract fell $1.13 to settle at $66.50/bbl.
The NYMEX natural gas price for September fell 2.4¢ to a rounded $2.76/MMbtu. The Henry Hub cash gas price declined 2¢ to $2.80/MMbtu.
Ultralow-sulfur diesel for September declined 4¢ to $2.10/gal. The NYMEX reformulated gasoline blendstock for September dropped more than 3¢ to $2.04/gal.
Brent crude oil for October fell $1.82 to $72.39/bbl on London’s International Commodity Exchange. The November contract declined $1.72 to settle at $72.67/bbl. The gas oil contract for August was $638/tonne, down $16.25.
The OPEC basket of crudes average price for Aug. 1 was $72.10/bbl, down $1.52.
Contact Paula Dittrick at [email protected].
