MARKET WATCH: NYMEX crude oil price drops on higher US oil inventory
Light, sweet crude oil dropped moderately Apr. 24 to settle under $66/bbl on the New York market while Brent for June delivery rose slightly on the London market to settle above $74/bbl for a third consecutive day.
US oil prices dropped after a weekly government report showed US oil supplies reached an 18-month high. The benchmark decline ended a snap in which light crude prices rose for three consecutive sessions on the New York market.
Oil prices rallied earlier this week after US President Donald Trump’s administration announced it would not extend waivers that permitted eight countries to continue importing Iranian oil despite US oil sanctions on Iran. Those waivers expire in early May.
Separately, the US Energy Information Administration said US crude oil supplies, excluding the Strategic Petroleum Reserve, climbed by 5.5 million bbl for the week ended Apr. 19 to 460.6 million, the highest level since October 2017.
US crude oil inventories are at the 5-year average for this time of year, EIA said. Total motor gasoline inventories decreased by 2.1 million bbl for the week ended Apr. 19, putting gasoline levels about 2% below the 5-year average for this time of year, the Weekly Petroleum Status Report said.
Meanwhile, the Paris-based International Energy Agency issued a comment that appeared to ease concerns by some analysts and traders that lifting of the waivers could create oil shortages.
“The IEA is monitoring developments in global oil markets, and notes that markets are now adequately supplied, and that global spare production capacity remains at comfortable levels,” IEA said.
Energy prices
The June contract for light, sweet crude oil on the New York Mercantile Exchange dropped 41¢ to settle at $65.89 on Apr. 24. The price for July delivery fell 35¢ to also settle at $65.89/bbl.
NYMEX natural gas for May edged up less than a penny to a rounded $2.46/MMbtu.
Ultralow-sulfur diesel for May decreased nearly 2¢ to a rounded $2.10/gal. The NYMEX reformulated gasoline blendstock for May fell less than 1¢ to remain at a rounded $2.13/gal.
Brent crude for June was up 6¢ to settle at $74.57/bbl. The July price went the opposite direction, dropping by 5¢ to settle at $73.84/bbl.
The gas oil contract for May decreased $4 to $644.25/tonne on Apr. 24. The average for OPEC’s basket of crudes was $73.43, up 16¢, on Apr. 24.
Contact Paula Dittrick at [email protected].
About the Author
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.