Light, sweet crude oil for March delivery rose nearly $1 to settle above $54/bbl on Jan. 30 as analysts continue to monitor political struggles in Venezuela. A weekly US government inventory report showed US gasoline supplies fell for the first time in 9 weeks.
US crude futures settled Jan. 30 at the highest level since Nov. 21, 2018. Light, sweet crude oil prices have risen in five of the last six sessions.
Oil prices began to rise after US President Donald Trump announced oil sanctions on Venezuela’s state-owned Petroleos de Venezuela SA.
President Trump is working to discredit the government of Venezuela President Nicolas Maduro in favor of opposition leader Juan Guaido, who US officials recognize as Venezuela’s president.
Separately, the US Energy Information Administration said US oil inventories rose by less than 1 million bbl for the week ended Jan. 25 compared with some analysts’ expectations for an increase of 3.1 million bbl (OGJ Online, Jan. 30, 2019).
Gasoline inventories unexpectedly fell by 2.2 million bbl, which marked the first decline in gasoline levels since November. Analysts attributed it to a slowing in US refining activity.
The Weekly Petroleum Status Report showed US oil production held at 11.9 million b/d for the week ended Jan. 25, unchanged from the previous week.
In other oil-related news, Chevron Corp. and ExxonMobil Corp. both are scheduled Feb. 1 to report earnings.
Energy prices
The March contract for light, sweet crude oil on the New York Mercantile Exchange climbed 92¢ to settle at $54.23/bbl on Jan. 30 while the April contract gained 87¢ to settle at $54.47/bbl.
NYMEX natural gas for March decreased nearly 5¢ to close at a rounded $2.85/MMbtu on Jan. 30.
Ultralow-sulfur diesel for February edged up less than a penny to remain at a rounded $1.90/gal. The NYMEX reformulated gasoline blendstock for February gained 3¢ to $1.38/gal.
Brent crude for March increased 33¢ to $61.65/bbl on London’s Intercontinental Exchange while the April contract gained 34¢ to settle at $61.54/bbl. The gas oil contract for February increased by $6.50 to $578.75/tonne on Jan. 29.
The average price for the Organization of Petroleum Exporting Countries’ basket of crudes was $60.93/bbl on Jan. 30, up $1.22.
Contact Paula Dittrick at [email protected].
