US crude oil futures for July delivery dropped back below $60/bbl on the New York market in June 19 trading, and analysts said concerns over Greece contributed to Brent crude oil prices falling more than $1/bbl on the London market that same day.
On June 22, Eurozone leaders were scheduled to meet in an effort to negotiate a deal on Greece’s flailing bailout.
Barclays said Saudi Arabia increased its refinery output by 10% during January through April compared with the same 4 months last year. During this period, Saudi Arabia drew down 4.6 million bbl of crude stocks, while building 4.9 million bbl of refined product stocks.
At 394 million bbl, combined crude and product stocks available to the kingdom, as of the end of April, was close to record levels and more than half of the US Strategic Petroleum Reserve, Barclays said in a research note.
“As the kingdom heads into the summer season, [Saudi Arabia’s] domestic demand is expected to pick up strongly. Crude burn for power generation is expected to touch close to record levels again. Despite these factors, the kingdom continues to be intent on satisfying incremental global oil demand by keeping production at high levels and by drawing down indigenous and foreign-held product and crude stocks,” Barclays said.
The July crude oil contract on the New York Mercantile Exchange declined 84¢ on June 19 to settle at $59.61/bbl. The August contract was down 85¢ to settle at $59.97/bbl.
The natural gas contract for July was up a rounded 4¢ to a rounded $2.82/MMbtu. The Henry Hub, La., gas price was down 5¢ to $2.81/MMbtu.
Heating oil for July was down nearly 5¢ to a rounded $1.87/gal. The price for reformulated gasoline stock for oxygenates blending for July also declined 5¢ to a rounded $2.06/gal.
The August ICE contract for Brent crude was down $1.24 to $63.02/bbl while the September contract declined $1.22 to $63.77/bbl. The ICE gas oil contract for July was down $17 to $571/tonne.
The average price for OPEC’s basket of 12 benchmark crudes for June 19 was $59.96/bbl, down 59¢.
Contact Paula Dittrick at email@example.com.
*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.