MARKET WATCH: NYMEX hovers just above $60/bbl

Crude oil benchmark prices dropped slightly on markets in New York and London July 11 following surplus predictions by the Organization of Petroleum Exporting Countries despite efforts to curtail inventory.

Crude oil benchmark prices dropped slightly on markets in New York and London July 11 following surplus predictions by the Organization of Petroleum Exporting Countries despite efforts to curtail inventory.

Light, sweet crude for August and September both settled just above $60/bbl while the Brent contracts for September and October remained above $66/bbl.

Despite its efforts to restrain supplies, OPEC on July 11 forecast a decline in demand for its supplies and a return of a surplus next year.

Meanwhile, in the Gulf of Mexico, production cut ahead of Tropical Storm Barry is expected to remain short-lived, with little impact on prices. Based on data from offshore operator reports submitted as of 11:30 CDT July 12, the US Bureau of Safety and Environmental Enforcement estimates 53.39% of the current oil production in the gulf has been shut in, which equates to 1,009,012 b/d of oil. It is also estimated that 44.51% of the natural gas production, or 1,237.28 MMcfd in the gulf has been shut in.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for August delivery decreased 23¢ to $60.20/bbl on July 11 while the September contract decreased 24¢ to $60.28/bbl.

NYMEX natural gas for August decreased a rounded 3¢ to $2.42/MMbtu.

Ultralow-sulfur diesel for August dropped 1¢ to a rounded $1.98/gal. The NYMEX reformulated gasoline blendstock for August decreased almost 2¢ to a rounded $1.99/gal.

Brent crude for September fell 49¢ to $66.52/bbl. The October price decreased 42¢ to settle at $66.22/bbl.

The gas oil contract for July was unchanged at $594.50/tonne on July 11.

The average for OPEC’s basket of crudes was $67.57/bbl on July 11, up $1.47.

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