Market watch: Crude prices rise on IPE, NYMEX

Crude oil prices rose sharply on Thursday on the New York Mercantile Exchange and the International Petroleum Exchange in London. Speculative trading, a bullish American Petroleum Institute weekly stocks report, and the Organization of Petroleum Exporting Countries' output cut all contributed to higher prices, said analysts.


By the OGJ Online Staff

HOUSTON, Aug. 3 -- Buoyed by anticipation of the Sept. 1 production cut by the Organization of Petroleum Exporting Countries, crude oil prices rose sharply Thursday on the New York Mercantile Exchange and the International Petroleum Exchange in London.

Speculative trading, a bullish American Petroleum Institute weekly stocks report, and the output cut all contributed to higher prices, analysts said.

The September contract for NYMEX light, sweet crude, the US benchmark, rose 94¢ to close at $27.71/bbl. The October contract rose 91¢ to $27.04/bbl.

On the IPE, Brent crude for September delivery increased $1.17 to $26.13/bbl. The October contract rose $1.10 to close at $26.10/bbl.

Tropical Storm Barry in the US Gulf of Mexico provided impetus for higher prices on both Thursday and Friday, as some operators working offshore considered evacuation.

Some traders took profits with the crude oil price surge.

On the NYMEX, the September contract for home heating oil rose 2.8¢ to close at 73.25¢/gal. Gasoline for the same month rose 3.09¢ to close at 77.60¢/gal.

The September contract for natural gas rose 11.1¢ to close at $3.192/Mcf on the NYMEX.

On the IPE, the September natural gas contract rose 2¢ to close at the equivalent of $2.51/Mcf.

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