MARKET WATCH: Oil benchmarks rise while OPEC meets
Crude oil prices rose July 1 while leaders of the Organization of Petroleum Exporting Countries decided to extend current crude production levels for another 9 months. OPEC is meeting with its non-OPEC allies, including Russia, on July 2.
Analysts said OPEC and its partners are concerned about weaker oil demand well going into 2020. Previously, OPEC cut oil production by 1.2 million b/d to support prices.
Russian President Vladimir Putin told reporters that he already reached an agreement with Saudi Crown Prince Mohammad bin Salman to extend the current crude oil production cuts when they met at the G20 conference in Osaka, Japan.
“This announcement highlights the power and influence of Russia over the OPEC decisions and politics,” said Sara Vakhshouri, president of SVB Energy International in Washington, DC. “It also a reminder of Russia’s strong alliance with Saudi Arabia that transforms the traditional role and functionality of OPEC and its members in balancing the oil market.”
Energy prices
Light, sweet crude oil on the New York Mercantile Exchange for August delivery gained 62¢ to $59.09/bbl on July 1 while the September contract increased 62¢ to $59.14/bbl.
NYMEX natural gas for August fell 4¢ to a rounded $2.26/MMbtu.
Ultralow-sulfur diesel for August gained 1¢ to $1.95/gal. The NYMEX reformulated gasoline blendstock for July increased 3¢ to a rounded $1.93/gal.
Brent crude for August held unchanged at $66.55/bbl. The September price increased 32¢ to settle at $65.06/bbl.
The gas oil contract for July declined $4.50 to $590.50/tonne on July 1.
The average for OPEC’s basket of crudes was $65.71/bbl on July 1, up 11¢.
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.
