The light, sweet crude oil contract for October fell to settle below $70/bbl on the New York market Aug. 31 while Brent crude oil for October also dropped but still managed to settle above $77/bbl for a third consecutive trading session.
Despite moderate losses Aug. 31, oil prices have risen on a weekly basis for two consecutive weeks, which analysts attribute to pending US oil sanctions on Iran scheduled to take effect in nearly November.
US President Donald Trump in May announced a US exit from an international agreement that previously lifted sanctions against Iran in exchange for that nation’s cooperation on its nuclear program. The Trump cabinet is asking other countries to stop buying Iranian crude.
Oil prices declined after release of the US rig count, which is seen as a sign of future US oil and gas production. Increased US oil production could help keep world supplies strong even as Iranian oil exports fall.
The US drilling rig count gained 4 rigs to 1,048 units working for the week ended Aug. 31, said Baker Hughes data. The count was up 105 units from the same time 1 year ago (OGJ Online, Aug. 31, 2018).
Energy prices
The light, sweet crude contract for October delivery on the New York Mercantile Exchange fell 45¢ to $69.80/bbl on Aug. 31. The November contract decreased 44¢ to settle at $69.37/bbl.
The NYMEX natural gas price for October gained 4¢ to $2.91/MMbtu. The Henry Hub cash gas rose 3¢ to $2.93/MMbtu.
Ultralow-sulfur diesel for September edged down less than 1¢ to $2.24/gal. The NYMEX reformulated gasoline blendstock for September crept upward by a fraction of a penny to remain at a rounded $2.14/gal.
Brent crude oil for October decreased 35¢ to $77.42/bbl on London’s International Commodity Exchange. The November contract fell 38¢ to $77.64/bbl. The gas oil contract for September was $690.25/tonne on Aug. 31, up $2.25.
The Organization of Petroleum Exporting Countries’ basket of crudes for Aug. 31 was $75.74/bbl, up 2¢.
Contact Paula Dittrick at [email protected].
