MARKET WATCH: Crude oil benchmarks jump more than $1/bbl

Both crude oil benchmarks gained more than $1/bbl July 30 with light, sweet crude oil futures for September settling above $58/bbl on the New York market and Brent crude for September settling above $64.70/bbl in London.

Both crude oil benchmarks gained more than $1/bbl July 30 with light, sweet crude oil futures for September settling above $58/bbl on the New York market and Brent crude for September settling above $64.70/bbl in London.

The oil price gains marked 2-week highs for front-month prices in advance of a weekly report on US oil and product inventories and ahead of an anticipated interest rate cut by the US Federal Reserve.

The rate cut would be intended to sustain the economy, which could in turn support oil demand.

Many analysts expect the rate cut to be announced July 31 as a 2-day Federal Open Market Committee meeting concludes. Such an announcement would be the first cut in the federal funds rate, now at 2.5%, since 2008. Some expect a 25-point basis cut, with another interest rate cut possible in September.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for September delivery jumped $1.18 to settle at $58.05/bbl on July 30 while the October contract increased $1.15 to $58.11/bbl.

Natural gas futures for September gained 2¢ to settle at a rounded $2.14/MMbtu. Gas futures have been on a losing streak recently (OGJ Online July 29, 2019).

Ultralow-sulfur diesel for August gained 3¢ to $1.94/gal. The NYMEX reformulated gasoline blendstock for August also gained 3¢ to a $1.89/gal.

Brent crude for September rose $1.01 to $64.72/bbl. The October contract also gained $1.01 to settle at $64.63/bbl.

Gas oil for August climbed $5.50 to $592.25/tonne on July 30.

The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $64.62/bbl on July 30, up 83¢.

Contact Paula Dittrick at pdittrick@endeavorb2b.com.

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