MARKET WATCH: NYMEX crude for September drops under $56/bbl
Light, sweet crude oil prices for September dropped by nearly 90¢ to settle under $56/bbl on the New York market July 24 while Brent for September in London fell 65¢ to settle just above $63/bbl, which analysts attributed largely to concerns about the world economy.
The US Energy Information Administration said on July 24 that crude oil inventories for the week ended July 19, excluding the Strategic Petroleum Reserve, decreased 10.8 million bbl from the previous week (OGJ Online, July 24, 2019).
Separately, the American Petroleum Institute said its own estimates showed US crude inventories decreased 11 million bbl for the week.
Oil prices have been volatile with escalating US-Iran tensions, which increase the threat of disruption to oil supplies moving across the Middle East shipping straits.
Euro values fell July 25 with a meeting of the European Central Bank. Meanwhile, US Federal Reserve officials have suggested they might cut interest rates at the end of July to help the economy. The anticipated cut in US rates is part of a worldwide cycle of monetary easing by major central banks in response to signs of slowing economic growth.
Oil is traded in US dollars on most markets worldwide. A decreasing US dollar makes oil less expensive for buyers starting with currencies of major oil-importing nations such as India and China.
Energy prices
Light, sweet crude oil on the New York Mercantile Exchange for September delivery dropped 89¢ to settle at $55.88/bbl on July 24 while the October contract decreased 85¢ to $56/bbl.
NYMEX natural gas for August fell 8¢ to a rounded $2.22/MMbtu.
Ultralow-sulfur diesel for August dropped 1¢ to a rounded $1.91/gal. The NYMEX reformulated gasoline blendstock for August edged down less than 1¢ to remain at a rounded $1.86/gal.
Brent crude for September fell 65¢ to $63.18/bbl. The October price decreased 67¢ to settle at $63.08/bbl.
The gas oil contract for August rose $7.50 to $592.50/tonne on July 24.
The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $63.92/bbl on July 23, down $1.33.
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.
