Benchmark oil prices on the New York and London market each rebounded by more than $2/bbl in continuing oil-price volatility on slowing economies, US-China trade relations, and geopolitical uncertainty in Hong Kong.
Hong Kong’s leader Carrie Lam said she would withdraw the extradition bill that triggered months of demonstrations and hurt the territory’s economy.
Lam said China “understands, respects, and supports” her government’s move to formally withdraw an extradition bill.
Oil investors remain worried oil supply will outpace oil demand. Oil prices received short-term support because analysts expect inventory data to show a decline in US oil supplies.
US Energy Information Administration is scheduled to release its weekly inventory report on Sept. 5, one day later than normal because of the Labor Day holiday.
A poll of analysts by the Wall Street Journal shows they expect inventories will have fallen 2.1 million bbl for the week ended Aug. 30 compared with the previous week.
Dow Jones Market Data shows oil prices swung more than 1% for the sixth consecutive session, oil’s longest such streak since early August, when it posted seven consecutive trading session moves.
Energy prices
Light, sweet crude oil on the New York Mercantile Exchange for October delivery increased $2.32 to $55.26/bbl on Sept. 4 while the November contract gained $2.34 to $56.10/bbl.
The October natural gas price on NYMEX rose nearly 9¢ to settle at a rounded $2.45/MMbtu on Sept. 5.
Ultralow-sulfur diesel for October increased 8¢ to $1.88/gal. The NYMEX reformulated gasoline blendstock for October gained 6¢ to a rounded $1.53/gal.
Brent crude for November rose $2.44 to $60.70/bbl. The December contract increased $2.36 to settle at $59.03/bbl.
Gas oil for September jumped by $23 to $574/tonne on Sept. 4.
The average for the Organization of Petroleum Exporting Countries’ basket of crudes for Sept. 4 was $58.97/bbl, up $1.16.
Contact Paula Dittrick at [email protected].
