Market watch: Oil futures prices improve with pending production cut
International oil futures prices advanced Friday following an agreement among members of the Organization of Petroleum Exporting Countries to cut production by 1 million b/d, effective Wednesday.
By the OGJ Online Staff
HOUSTON, July 30 -- International oil futures prices advanced Friday following an agreement among members of the Organization of Petroleum Exporting Countries to cut production by 1 million b/d, effective Sept. 1.
The September contract for benchmark US light, sweet crudes climbed 29¢ to $27.02/bbl on the New York Mercantile Exchange, while the October contract added 8¢ to $26.41/bbl.
However, unleaded gasoline for September delivery dropped 0.61¢ to 75.75¢/gal and home heating oil lost 0.58¢ to 71.31¢/gal. The September contract for natural gas gained 3.9¢ to $3.17/Mcf on the NYMEX.
In London, the September contract for North Sea Brent crude inched up 2¢ to $28.16/bbl on the International Petroleum Exchange. The August natural gas contract declined by 1.7¢ to the equivalent of $2.69/Mcf on the IPE.
The average price for OPEC's basket of seven crudes lost 4¢ to $23.87/bbl on Friday. But for the week as a whole, the basket price averaged $23.52/bbl, up from $23.07/bbl the previous week.
So far this year, the OPEC basket has averaged $24.83/bbl, including averages of $25.63/bbl for the second quarter and $24.36/bbl for the first quarter. That's down from an average of $27.60/bbl for 2000 as a whole.