MARKET WATCH: NYMEX, Brent crude oil prices gain moderately pending inventory
Crude oil prices gained about 85¢ on the New York and London markets July 6 pending release of the weekly US crude and products inventory report, which was delayed a day later than normal because of the July 4 holiday.
A Wall Street Journal survey of 14 investment banks sees Brent crude averaging $57/bbl for 2017, which was unchanged from WSJ’s May survey results. The bankers expect US light, sweet crude will average $55/bbl in 2017.
Separately, Raymond James & Associates Inc. raised its 2017 oil price forecasts. RJA’s price forecast remain higher than forecast from many other analysts.
“Specifically, our 2017 forecast for West Texas Intermediate increased to $80/bbl from $75/bbl and Brent increased to $83/bbl from $79/bbl—marking the cyclical peak of the oil recovery,” RJA said in a July 5 note.
RJA said its 2018 forecast is that WTI will average $75/bbl and Brent will average $80/bbl.
“Our previous price forecast was considerably more bullish than street consensus, and as a result our revised forecast was even more so,” RJA said.
Energy prices
The crude oil contract for August on the New York Mercantile Exchange gained 83¢ on July 6 to settle at $47.43/bbl. The September contract rose 85¢ to $48.14/bbl.
The natural gas contract for August gained 2¢ to close at a rounded $2.79/MMbtu. The Henry Hub gas price was $2.75/MMbtu, down 7¢ on July 6.
Heating oil for August delivery gained 2.5¢ to a rounded $1.47/gal. The price for reformulated gasoline stock for oxygenates blending for August was up less than a penny to a rounded $1.43/gal.
The September Brent crude contract on London’s ICE gained 84¢ on July 6 to $48.80/bbl. The contract for October rose 83¢ to $49.40/bbl. The July gas oil contract for July 6 was $417.25/tonne.
The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes was $44.35/bbl on July 6, up 1¢.
Contact Paula Dittrick at [email protected].
Paula Dittrick | Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.
