Crude oil futures for July delivery on the New York market fell modestly on June 11, retreating from a 2015 high settlement set the previous day. Analysts attributed the price drop to a strengthening dollar and also to concerns about ample oil supplies.
Because oil trades in dollars, a stronger US dollar makes it more expensive for buyers using other currencies. In addition, traders and analysts awaited the weekly rig count statistics from Baker Hughes Inc. scheduled to be released June 12.
Global oil demand averaged 93.3 million b/d during the first half, up 1.6 million b/d on the year and 400,000 b/d above the estimate in last month’s report, IEA said. Global demand for all of 2015 was forecast to average 94 million b/d, 1.4 million b/d up on the year.
Regarding supply, IEA raised its forecast for supply growth outside the Organization of Petroleum Exporting Countries by 195,000 b/d. OPEC currently is producing nearly 1 million b/d above its production quota of 30 million b/d, cartel representatives and others have said.
US natural gas levels in underground storage across the Lower 48 climbed 111 bcf as of June 5 compared with the previous week, the Energy Information Administration reported.
The Gas Storage Report estimated levels at 2.34 tcf as of June 5. Stocks were 753 bcf higher than last year at this time and 44 bcf above the 5-year average of 2.3 tcf.
The natural gas contract for July was down 6.6¢ to a rounded $2.83/MMbtu. The Henry Hub, La., gas price dropped 5¢ to $2.87/MMbtu.
Heating oil for July was down nearly 2.5¢ to a rounded $1.92/gal. The price for reformulated gasoline stock for oxygenates blending for July dropped less than a penny to a rounded $2.14/gal.
The July ICE contract for Brent crude was down 59¢ to $65.11/bbl while the August contract dropped 58¢ to $65.79/bbl. The ICE gas oil contract for June was unchanged at $595/tonne while the July gas oil contract was down $6 to $589.25/tonne.
The average price for OPEC’s basket of 12 benchmark crudes for June 11 was $62.14/bbl, down 27¢.
Contact Paula Dittrick at email@example.com.
*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.