MARKET: Brent for August drops $1/bbl
Brent crude oil for August delivery dropped by $1 to dip below $63/bbl on June 10 while light, sweet crude oil prices for July and August delivery also dropped moderately but both settled above $53/bbl.
Ole Hansen of Saxo Bank said, “Crude oil began the week on the defensive with continued focus on the risk to global growth and demand.” He also noted rising weekly US crude oil inventories.
Hansen said oil buyers’ short-term focus will move to monthly oil market reports from the US Energy Information Administration June 11, the Organization of Petroleum Exporting Countries on June 13, and the International Energy Agency on June 14.
“The market will scrutinize these reports for any change in the demand outlook from these major forecasters,” Hansen said.
Energy prices
Light, sweet crude oil on the New York Mercantile Exchange for July delivery was down 73¢ to $53.26/bbl while the August contract fell 68¢ to settle at $53.48/bbl.
NYMEX natural gas for July was up 20¢ to settle at a rounded $2.36/MMbtu.
Ultralow-sulfur diesel for July decreased nearly 2¢ to a rounded $1.81/gal. The NYMEX reformulated gasoline blendstock for July fell less than 1¢ to a rounded $1.73/gal.
Brent crude for August dropped $1 to settle at $62.29/bbl. The September price decreased 84¢ to settle at $61.34/bbl.
The gas oil contract for June gained $1.25 to $559.25/tonne on June 10.
The average for OPEC’s basket of crudes was up 30¢ to $63.01/bbl on June 10.
Contact Paula Dittrick at [email protected].
Paula Dittrick | Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.
