MARKET WATCH: Oil benchmarks jump more than $1/bbl

Benchmark oil prices climbed more than $1/bbl on the New York and London markets June 26 after the US government reported a weekly drop of nearly 13 million bbl in crude oil supplies, excluding the Strategic Petroleum Reserve.

Jun 27th, 2019

Benchmark oil prices climbed more than $1/bbl on the New York and London markets June 26 after the US government reported a weekly drop of nearly 13 million bbl in crude oil supplies, excluding the Strategic Petroleum Reserve.

The Energy Information Administration reported US crude supplies dropped 12.8 million bbl for the week ended June 21. At 469.6 million bbl, US crude oil inventories are 5% above the 5-year average for this time of year, EIA said (OGJ Online, June 26, 2019).

The American Petroleum Institute on June 25 reported a 7.5 million-bbl fall for the week ended June 21.

US futures for both oil and gasoline settled at their highest in 5 weeks. Gasoline futures rallied after news that the Philadelphia Energy Solutions (PES) refinery, the largest East Coast refinery, is shutting down and will be put up for sale.

PES made its announcement less than a week after a fire and explosion at the independent refiner’s 335,000-b/d complex in Philadelphia (OGJ Online, June 26, 2019).

PES was formed in 2012 as a result of a partnership between Carlyle Group and Sunoco Inc., a subsidiary of Energy Transfer LP family of companies, said the PES web site.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for August delivery climbed $1.55 to $59.38/bbl on June 26 while the September contract rose $1.54 to $59.43/bbl.

NYMEX natural gas for July dropped nearly 2¢ to a rounded $2.29/MMbtu.

Ultralow-sulfur diesel for July rose 5¢ to $1.97/gal. The NYMEX reformulated gasoline blendstock for July increased 9¢ to a rounded $1.97/gal.

Brent crude for August added $1.44 to $66.49/bbl. The September price increased $1.41 to settle at $65.69/bbl.

The gas oil contract for July gained $10.25 to $599/tonne on June 26.

The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $65.60/bbl on June 26, up 81¢.

Contact Paula Dittrick at pdittrick@endeavorb2b.com.

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