Light, sweet crude oil prices fell just over $1/bbl on the New York market and Brent crude oil prices fell almost as much in London as US crude stockpiles reach high levels not seen in almost 17 months.
US crude oil inventories for the week ended Apr. 5 increased by 7 million bbl from the previous week to reach 456.5 million bbl, data from the US Energy Information Administration showed (OGJ Online, Apr. 11, 2019).
The International Monetary Fund downgraded its global growth forecast this week, sparking concerns of an economic slowdown that may slow fuel consumption, but supply cuts led by the Organization of Petroleum Exporting Countries are keeping oil markets tight, said Ole Hansen, head of commodity strategy at Saxo Bank.
Oil markets will remain tight “as long as Saudi Arabia continues to back the production-cut deal as aggressively as it has done so far,” Hansen said.
Energy prices
The May contract for light, sweet crude oil on the New York Mercantile Exchange dropped $1.03 to settle at $63.58/bbl on Apr. 11. The price for June delivery was down 98¢ to settle at $63.67/bbl.
NYMEX natural gas for May dropped 4¢ to settle at a rounded $2.66/MMbtu.
Ultralow-sulfur diesel for May dropped 2¢ to a rounded $2.07/gal. The NYMEX reformulated gasoline blendstock for May dropped nearly 4¢ to settle at a rounded $2.03/gal.
Brent crude for fell 90¢ to settle at $70.83/bbl. The July price also fell 90¢ to settle at $70.94/bbl.
The gas oil contract for April remained unchanged at $627/tonne on Apr. 11.
OPEC’s basket of crudes for Apr. 11 was $70.41/bbl, up 10¢.
