MARKET WATCH: Oil prices rise on lower US crude inventory
Light, sweet crude oil prices settled above $69/bbl on the New York market July 25 after a weekly US government report showed an unexpectedly steep decline in US crude oil inventories. Meanwhile, record US oil production held steady with the previous week.
The US futures crude price for September briefly reached $69.70/bbl during July 25 trading but fell to settle at $60.30/bbl. In London, the Brent crude oil price for September also rose to settle at nearly $74/bbl.
The US Energy Information Administration estimated US crude oil inventories fell 6.1 million bbl to 405 million bbl for the week ended July 20 (OGJ Online, July 25, 2018).
Analysts surveyed by The Wall Street Journal before the weekly government report had expected inventories to drop by 2.9 million bbl.
EIA’s Weekly Petroleum Status Report also showed US oil production held steady at 11 million b/d for the week ended July 20, unchanged from the week ended July 13.
In other news, oil traders and analysts monitored a July 25 meeting between US President Donald Trump and European Commission President Jean-Claude Juncker in which both sides agreed, at least for now, against any imposing new tariffs on one another.
The US and EU will “work together toward zero tariffs, zero nontariff barriers, and zero subsidies on nonauto industrial goods [and] work to reduce barriers and increase trade in services, chemicals, pharmaceuticals, medical products, as well as soybeans,” Trump and Juncker said in a joint statement.
Separately, Saudi Arabia has suspended all its oil shipments through the Bab el-Mandeb Strait at the southern tip of the Red Sea following an attack on two oil tankers by Yemeni Houthi militia.
Energy prices
The light, sweet crude contract for September delivery on the New York Mercantile Exchange rose 78¢ to close at $69.30/bbl on July 25. The October contract gained 82¢ to settle at $68.01/bbl.
The NYMEX natural gas price for August gained 4¢ to a rounded $2.77/MMbtu. The Henry Hub cash gas price added 5¢ to $2.77/MMbtu.
Ultralow-sulfur diesel for August rose 2¢ to $2.15/gal. The NYMEX reformulated gasoline blendstock for August gained nearly 3¢ to settle at $2.12/gal.
Brent crude oil for September gained 49¢ to $73.93/bbl on London’s International Commodity Exchange. The October contract added 61¢ to settle at $74.41/bbl. The gas oil contract for August was $656.75/tonne, up $1.
The Organization of Petroleum Exporting Countries’ basket of crudes average price for July 25 was $72.87/bbl, up 86¢.
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.