Light, sweet crude oil prices for September rose moderately on the New York market closing above $56/bbl on July 25 while Brent crude oil also rose, settling at nearly $63.40/bbl.
Earlier in the trading session, oil prices dropped as market participants digested reports that US crude oil supplies dropped nearly 11 million bbl for the week ended July 19 to their lowest level since March. Inventories have fallen for 6 consecutive weeks.
Analysts cautioned that Hurricane Barry skewed statistics because operators shut in some Gulf of Mexico production as the storm approached, making landfall July 13 in Louisiana. The system was quickly downgraded to a tropical storm.
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.
Energy prices
Light, sweet crude oil on the New York Mercantile Exchange for September delivery gained 14¢ to settle at $56.02/bbl on July 25 while the October contract increased 16¢ to $56.16/bbl.
NYMEX natural gas for August rose 2¢ to a rounded $2.24/MMbtu.
Ultralow-sulfur diesel for August edged up less than 1¢ to remain at a rounded $1.91/gal. The NYMEX reformulated gasoline blendstock for August gained 2.5¢ to a rounded $1.88/gal.
Brent crude for September rose 21¢ to $63.39/bbl. The October price increased 18¢ to settle at $63.26/bbl.
The gas oil contract for August declined $4.25 to $588.25/tonne on July 25.
The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $64.55/bbl on July 25, down 3¢.
Contact Paula Dittrick at [email protected].
