MARKET WATCH: NYMEX oil prices rise nearly $1/bbl pending US inventory report
Light, sweet crude oil for September delivery rose nearly $1/bbl on the New York market Aug. 21 to settle above $67/bbl, which analysts attributed to expectations of declining US oil supplies.
The American Petroleum Institute on Aug. 21 said its data showed a drop of 5.2 million bbl in US crude oil supplies for the week ended Aug. 17.
The US Energy Information Administration was scheduled to release its weekly report later Aug. 22. Analysts surveyed by the Wall Street Journal expected supplies to drop 2 million bbl from the previous week.
For the week ended Aug. 10, EIA reported a gain of 6.8 million bbl in crude inventories.
Oil market participants also awaited scheduled US-China trade talks expected in Washington, DC, on Aug. 22. Morningstar Commodities Research noted earlier this month that China’s crude demand declined in the second quarter because of Chinese government changes to tax regulations that slowed sales by independent refiners.
Meanwhile, the threat of crude tariffs reportedly has slowed Chinese imports of US crude oil. Reuters reported in early August that China Petrochemical Corp. (Sinopec) had stopped buying US crude because of concerns about possible tariffs.
Energy prices
The light, sweet crude contract for September delivery on the New York Mercantile Exchange gained 92¢ to close at $67.35/bbl on Aug. 21. The October contract increased 42¢ to settle at $65.84/bbl.
The NYMEX natural gas price for September gained nearly 4¢ to $2.98/MMbtu. The Henry Hub cash gas price increased 2¢ to $3.01/MMbtu.
Ultralow-sulfur diesel for September gained 1¢ to $2.12/gal. The NYMEX reformulated gasoline blendstock for September edged up less than a penny to a rounded $2.02/gal.
Brent crude oil for October rose 42¢ to $72.63/bbl on London’s International Commodity Exchange. The November contract increased 34¢ to settle at $72.91/bbl. The gas oil contract for September was $651.50/tonne on Aug. 21, up $6.75.
The Organization of Petroleum Exporting Countries’ basket of crudes for Aug. 21 was not immediately available.
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.