Brent crude oil for October delivery gained nearly $1 on Aug. 28 to settle above $60/bbl for the first time in a week while light, sweet crude oil for October rose less than $1 to settle at nearly $55.80/bbl.
“These gains still remain fragile,” said Harry Tchilinguirian, BNP Paribas head of commodity markets strategy. “It would not take much in terms of negative economic news tied to US-China trade relations to send the oil price back down.”
Ole Hansen, Saxo Bank head of commodity strategy, said US oil futures remain “stuck around $55/bbl” where the price has hovered since June.
He said the prospect of declining US oil inventories and the Organization of Petroleum Exporting Countries production cuts are offsetting oil investors’ worries about slowing world oil growth and demand.
The American Petroleum Institute estimated the US oil inventory dropped by more than 11 million bbl for the week ended Aug. 23 compared with the previous week.
Separately, the US Energy information Administration estimated US crude oil inventories, excluding the Strategic Petroleum Reserve, decreased by 10 million bbl for the week ended Aug. 23 from the previous week (OGJ Online, Aug. 28, 2019).
EIA’s Weekly Petroleum Status Report also said US crude oil product was 12.5 million b/d for the week ended Aug. 23, up 200,000 b/d with most of the production gain coming from the Lower 48.
Energy prices
Light, sweet crude oil on the New York Mercantile Exchange for September delivery increased 85¢ to $55.78/bbl on Aug. 28 while the October contract gained 83¢ to $55.60/bbl.
The NYMEX natural gas price for September increased nearly 5¢ to $2.25/MMbtu.
Ultralow-sulfur diesel for September increased slightly more than 3¢ to $1.85/gal. The NYMEX reformulated gasoline blendstock for September increased 3¢ to a rounded $1.68/gal.
Brent crude for October gained 98¢ to $60.49/bbl. The November contract added 90¢ to settle at $59.93/bbl.
Gas oil for September increased $16 to $569.50/tonne on Aug. 28.
The average for OPEC’s basket of crudes for Aug. 29 was $60.16/bbl, up $1.18.
Contact Paula Dittrick at [email protected].
