MARKET WATCH: NYMEX, Brent trade mixed on lower US oil inventory

Light, sweet crude oil dropped modestly to settle under $56/bbl on the New York market Aug. 21 following a drop in US oil supplies, but Brent crude oil gained to settle above $60/bbl for a second consecutive trading session in London.

Light, sweet crude oil dropped modestly to settle under $56/bbl on the New York market Aug. 21 following a drop in US oil supplies, but Brent crude oil gained to settle above $60/bbl for a second consecutive trading session in London.

US crude inventories, excluding the Strategic Petroleum Reserve, fell by 2.7 million bbl for the week ended Aug. 16 compared with the previous week (OGJ Online, Aug. 16, 2019). The drop in crude oil supplies was more than analysts had expected.

The US Energy Information Administration also said gasoline and distillate inventories rose.

EIA’s Weekly Petroleum Status Report said US oil production held steady at 12.3 million b/d for the week ended Aug. 16 compared with the previous week.

US Federal Reserve Chairman Jerome Powell is scheduled to speak Aug. 23 in Jackson Hole, Wyo. Traders await his comments for indicators of whether the central bank will continue to cut interest rates.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for September delivery declined 45¢ to $55.68/bbl on Aug. 21 while the October contract decreased 31¢ to $55.49/bbl.

The NYMEX natural gas price for September dropped nearly 5¢ to a rounded $2.17/MMbtu.

Ultralow-sulfur diesel for September edged up less than 1¢ to $1.86/gal. The NYMEX reformulated gasoline blendstock for September increased 1¢ to a rounded $1.69/gal.

Brent crude for October increased 27¢ to $60.30/bbl. The November contract gained 28¢ to settle at $59.86/bbl.

Gas oil for September increased $8.50 to $572/tonne on Aug. 21.

The average for the Organization of Petroleum Exporting Countries’ basket of crudes for Aug. 21 was $60.66/bbl, up 72¢.

Contact Paula Dittrick at pdittrick@endeavorb2b.com.

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