MARKET WATCH: NYMEX oil drops below $60/bbl after Hurricane Barry

Light, sweet crude oil contracts for August and September fell about 60¢ to settle below $60/bbl in New York July 15 as US oil companies begin restoring some of the nearly 74% of oil production that was shut in the gulf ahead of Hurricane Barry.

Light, sweet crude oil contracts for August and September fell about 60¢ to settle below $60/bbl on the New York market July 15 as US oil companies begin restoring some of the nearly 74% of oil production that was shut in the Gulf of Mexico ahead of Hurricane Barry.

US crude prices had climbed above $60/bbl recently with the approach of the hurricane, which was quickly downgraded to a tropical storm after making landfall in Louisiana on July 13.

The US Bureau of Safety and Environmental Enforcement reported 1.3 million b/d of oil production offline in the gulf on July 15, which was 80,000 b/d lower than BSEE reported on July 14.

The latest available BSEE estimate showed 69.08% of current gulf oil production was shut in and 60.58% of the natural gas production, or 1.684 bcfd, as of July 15.

Based on data from offshore operator reports submitted as of 11:30 a.m. CDT on July 15, personnel had been evacuated from 267 production platforms, or about 39.9% of the manned platforms in the gulf, BSEE said.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for August delivery decreased 63¢ to $59.58/bbl on July 15 while the September contract dropped 62¢ to $59.68/bbl.

NYMEX natural gas for August decreased 4¢ to a rounded $2.41/MMbtu.

Ultralow-sulfur diesel for August dropped nearly 3¢ to a rounded $1.95/gal. The NYMEX reformulated gasoline blendstock for August decreased nearly 5¢ to a rounded $1.93/gal.

Brent crude for September fell 24¢ to $66.48/bbl. The October price decreased 42¢ to settle at $65.92/bbl.

The gas oil contract for August fell $4.50 to $600.50/tonne on July 15.

The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $66.79/bbl on July 15, down 57¢.

Contact Paula Dittrick at pdittrick@endeavorb2b.com.

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