MARKET: Crude oil drops despite lower inventory

Light, sweet crude oil prices for July and August contracts dropped slightly in June 19 trading in New York but still settled above $53/bbl while Brent prices also dropped to settle under $62/bbl.

Jun 20th, 2019

Light, sweet crude oil prices for July and August contracts dropped slightly in June 19 trading in New York but still settled above $53/bbl while Brent prices also dropped to settle under $62/bbl.

Oil prices dropped despite a US weekly government report showing a decline in US oil inventories.

US crude oil inventories for the week ended June 14, excluding the Strategic Petroleum Reserve, decreased 3.1 million bbl to 482.4 million bbl. Oil inventories are 7% above the 5-year average for this time of year, EIA said (OGJ Online, June 19, 2019).

Meanwhile, US crude oil production also slowed for a second consecutive week. Production fell to 12.2 million b/d for the week ended June 14 from 12.3 million b/d for the previous week, EIA said in the Weekly Petroleum Status Report.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for July delivery dropped 14¢ to $53.76/bbl while the August contract also decreased 14¢ to settle at $53.97/bbl.

NYMEX natural gas for July declined less than 1¢ to a rounded $2.27/MMbtu.

Ultralow-sulfur diesel for July edged up by a fraction of 1¢ to remain at a rounded $1.83/gal. The NYMEX reformulated gasoline blendstock for July gained 1¢ to a rounded $1.73/gal.

Brent crude for August dropped 32¢ to $61.82. The September price decreased 29¢ to settle at $61.04/bbl. 

The gas oil contract for July declined $2.25 to $560.25/tonne on June 18. The average for OPEC’s basket of crudes was unavailable for June 18. 

Contact Paula Dittrick at pdittrick@endeavorb2b.com.

 

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