Crude oil prices on the New York and London markets continued their post-Brexit decline on June 27, falling more than $1 in a continued reaction to last week’s vote by Britain to leave the European Union (OGJ Online, June 27, 2016).
But the shock appeared to be easing on June 28 as crude prices crept upward again in early trading, supported by slightly more positive data concerning US economic growth.
In its third estimate of the country’s real gross domestic product, the US Bureau of Economic Analysis reported a first-quarter increase of 1.1%, up from 0.8% in the agency’s second estimate. The third estimate is “based on more complete source data,” BEA said. That figure, however, remains weak relative to data in recent years.
On the supply side, concerns centered on possible production outages in Norway that would be caused by striking oil and gas workers. The Wall Street Journal reported on June 28 that as many as 7,500 workers could join the effort in demanding a new wage deal before July 1.
Preliminary estimates by the Norwegian Petroleum Directorate show the country during May produced 1.549 million b/d of oil.
The natural gas contract for July increased 5.4¢ to close at a rounded $2.72/MMbtu. The Henry Hub, La., gas price was $2.76/MMbtu, rising 9¢.
Heating oil for July delivery decreased 2.61¢ to a rounded $1.43/gal. The price for reformulated gasoline stock for oxygenates blending for July dropped 4.83¢ to a rounded $1.48/gal.
The August Brent crude contract on London’s ICE lost $1.25 on June 27 to $47.16/bbl. The contract for September dropped $1.27 to $47.77/bbl. The July gas oil contract again fell $14.25, settling at $420.75/tonne.
The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes on June 27 was $44.32/bbl, a decline of 56¢.
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