Light, sweet crude oil for March delivery dropped to settle below $54/bbl on the New York market Feb. 5 as participants awaited a weekly US government report on oil and product inventories.
Oil prices continued to decline on Feb. 6 after the American Petroleum Institute released weekly inventory data late Feb. 5 showing US crude stockpiles rose by 2.5 million bbl for the week ended Feb. 1.
The estimated inventory rise was more than analysts anticipated. Analysts surveyed by the Wall Street Journal expect the US Energy Information Administration will report US crude inventories, excluding the Strategic Petroleum Reserve, increased by 1.4 million bbl.
EIA was to release its report later Feb. 6. Crude oil began to weaken Feb. 5 on a strengthening US dollar in comparison with other currencies, analysts said.
Oil is traded in US dollars on most markets worldwide. A stronger dollar makes oil more expensive for buying using other currencies. The WSJ Dollar Index said the dollar was up 0.13% against a basket of 16 of other currencies as of early Feb. 6.
Energy prices
The March contract for light, sweet crude oil on the New York Mercantile Exchange declined 90¢ to settle at $53.66/bbl on Feb. 5 while the contract for April delivery decreased 89¢ to settle at $54/bbl.
NYMEX natural gas for March nudged up less than 1¢ to remain at a rounded $2.66/MMbtu on Feb. 5.
Ultralow-sulfur diesel for March dropped nearly a penny to a rounded $1.90/gal. The NYMEX reformulated gasoline blendstock for March fell less than 1¢ to remain at a rounded $1.43/gal.
Brent crude for April delivery declined by 53¢ to settle at $61.98/bbl while the May contract dropped 51¢ to settle at $62.07/bbl. The gas oil contract for February decreased 75¢ to $579.75/tonne on Feb. 5.
The average price for the Organization of Petroleum Exporting Countries’ basket of crudes was $62.07/bbl on Feb. 5, down 25¢.
Contact Paula Dittrick at [email protected].
