Both light, sweet crude oil and Brent crude oil prices rose more than $1/bbl on the New York and London markets Aug. 10, but prices appeared to be falling again in early Aug. 11 trading upon news that China’s central bank devalued its currency.
A devalued yuan makes China’s oil imports more expensive because oil trades in dollars. China’s central bank said it was trying to make the midpoint more market based. The devaluation comes more than 10 years after China started a process to lift the value of its currency.
The Organization of Petroleum Exporting Countries said in its monthly report that the cartel’s production rose 101,000 b/d to 31.5 million b/d during July
“US production remains near the highest level in 4 decades although the commodity price is telling the US shale sector to shrink,” OPEC said in its report, which also forecast US production will rise this year and next year.
OPEC representatives said there is no proposal for any emergency meeting before the scheduled Dec. 4 meeting.
The natural gas contract for September was up 4¢ to a rounded $2.84/MMbtu. The Henry Hub, La., gas price rose 5¢ to $2.85/MMbtu.
Heating oil for September delivery climbed nearly 5¢ to a rounded $1.59/gal. The price for reformulated gasoline stock for oxygenates blending for September rose 7¢ to a rounded $1.69/gal.
The September ICE contract for Brent crude rose $1.80 to $50.41/bbl on Aug. 10. The October contract was up $1.78 to $51.02/bbl. The ICE gas oil contract for September was up $11.25 to $481.50/tonne.
The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes for Aug. 10 was $47.32, up 37¢.
Contact Paula Dittrick at firstname.lastname@example.org.
*Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.