MARKET WATCH: NYMEX crude gains nearly $1/bbl on oil inventory drop
Light, sweet crude oil prices gained nearly $1/bbl on the New York market Aug. 29 after a government report showed US crude oil supplies declined more than analysts had expected for the week ended Aug. 24.
The US Energy Information Administration said crude inventories fell 2.6 million bbl, which was more than twice the decline expected by analysts and traders surveyed by the Wall Street Journal in advance of the weekly report (OGJ Online, Aug. 29, 2018). The latest estimated crude inventory was 405.8 million bbl.
“For the first time since its price slide on July 11, Brent climbed above $77/bbl,” a Commerzbank research note said of the Aug. 29 settlement in London. “The surge was probably sparked by the US inventory data.”
Meanwhile, US oil production held steady for the week ended Aug. 24 compared with the previous week. The Petroleum Status Report showed US oil production at 11 million b/d.
Energy prices
The light, sweet crude contract for October delivery on the New York Mercantile Exchange rose 98¢ to $69.51/bbl on Aug. 29. The November contract increased 95¢ to settle at $69.17/bbl.
The NYMEX natural gas price for September rose 4¢ to $2.89/MMbtu. The Henry Hub cash gas gained 3¢ to $2.96/MMbtu.
Ultralow-sulfur diesel for September gained 3¢ to remain at a rounded $2.24/gal. The NYMEX reformulated gasoline blendstock for September rose 2¢ to a rounded $2.11/gal.
Brent crude oil for October increased $1.19 to $77.14/bbl on London’s International Commodity Exchange. The November contract rose $1.17 to $77.46/bbl. The gas oil contract for September was $684.25/tonne on Aug. 30, up 25¢.
The Organization of Petroleum Exporting Countries’ basket of crudes for Aug. 30 was $74.48/bbl, down 27¢.
Contact Paula Dittrick at [email protected].
About the Author
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.