MARKET WATCH: Benchmarks crude prices gain to end the week

Light, sweet crude oil for September gained more than $1.70 on Aug. 2 to settle at $55.66/bbl while Brent crude oil for October gained to approach $62/bbl to end a volatile week in which prices sank by $4 the previous day on US-China relations.

Light, sweet crude oil for September gained more than $1.70 on Aug. 2 to settle at $55.66/bbl while Brent crude oil for October gained to approach $62/bbl to end a volatile week in which prices sank by $4 the previous day on US-China relations.

The US Energy Information Administrated reports US crude oil production has held above 12 million b/d in recent months, rising to a record 12.3 million b/d at times in June and July.

For the week ended July 19, production fell to 11.3 million b/d with Hurricane Barry approaching Louisiana, prompting some temporary production shut-ins and platform evacuations. But EIA reported production returned to 12.2 million b/d for the week ended July 26.

Meanwhile in July, the Organization of Petroleum Exporting Countries and other producers, including Russia, extended production-cut targets of 1.2 million b/d, which was agreed upon by OPEC and other major producers on late 2018. Those production-cut targets now extend into 2020.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for September delivery gained $1.71 to settle at $55.66/bbl on Aug. 2 while the October contract rose $1.66 to $55.67/bbl.

The NYMEX natural gas price for September decreased 8¢ to $2.12/MMbtu.

Ultralow-sulfur diesel for September rose nearly 4¢ to $1.89/gal. The NYMEX reformulated gasoline blendstock for September gained 3¢ to a rounded $1.78/gal.

Brent crude for October gained $1.39 to $61.89/bbl. The November contract rose $1.36 to settle at $61.32/bbl.

Gas oil for August declined $8.25 to $578/tonne on Aug. 2.

The average for OPEC’s basket of crudes was $61.75/bbl on Aug. 2, down $1.79.

Contact Paula Dittrick at pdittrick@endeavorb2b.com.

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