Brent crude oil prices rose slightly but held relatively flat on the London market Aug. 12, settling above $58/bbl for a second consecutive day. Light, sweet crude gained moderately in New York to settle under $55/bbl.
Saudi Arabia has indicated it will restrict oil production in coming months to help offset lower oil prices. Most market participants consider the Saudis to be leading oil-market rebalancing efforts in 2019 amid US-China trade conflicts and slowing world economic growth.
After the Brent front-month contract slid below $60/bbl on Aug. 7, Saudi Oil Minister Khalid Al-Falih said he would work with other oil producers and “do whatever it takes” to stabilize the oil market.
The Organization of Petroleum Exporting Countries Monthly Oil Market Report comes out Aug. 16.
Meanwhile, statistics show the number of US active rigs drilling for oil dropped for a sixth straight week, down 6 rigs from the previous week to reach 764 for the week ended Aug. 9, Baker Hughes reported.
The Aug. 9 oil drilling level was the lowest US oil rig count since late January 2018. For the same time a year ago, 869 units drilled for oil, Baker Hughes said.
Energy prices
Light, sweet crude oil on the New York Mercantile Exchange for September delivery gained 43¢ to settle at $54.93/bbl on Aug. 12 while the October contract rose 48¢ to $54.85/bbl.
The NYMEX natural gas price for September decreased 1¢ to a rounded $2.11/MMbtu.
Ultralow-sulfur diesel for September edged down less than 1¢ to remain at $1.80/gal. The NYMEX reformulated gasoline blendstock for September declined nearly 1¢ to a rounded $1.66/gal.
Brent crude for October gained 4¢ to $58.57/bbl. The November contract rose 11¢ to settle at $58.30/bbl.
Gas oil for August held unchanged at $555.50/tonne on Aug. 12.
The average for OPEC’s basket of crudes was unavailable because the OPEC offices are closed through Aug. 13.
Contact Paula Dittrick at [email protected].
