OIL PRICE UP TO $51.44
According to OGJ, the light, sweet crude oil contract for July delivery rose on the New York market to settle above $50/bbl June 7, marking the highest settlement since July 21, 2015. Brent crude for August delivery settled at $51.44/bbl on the London market. It was the highest price for front-month Brent since Oct. 9, 2015.
Analysts attributed higher oil prices to an anticipated draw in US crude inventories for the week ended June 3 and on concerns about continuing attacks on Nigerian oil pipelines.
The US Energy Information Administration was scheduled to release its weekly US crude oil and products inventory later June 8.
In the June Short-Term Energy Outlook, EIA forecast Brent crude oil prices will average $43/bbl in 2016 and $52/bbl in 2017, $3/bbl and $1/bbl higher, respectively, than forecasts in last month's STEO. EIA forecast light, sweet crude oil prices would average slightly less than Brent in 2016 and be the same as Brent in 2017.
"Global fundamentals have really tightened significantly in the past 6 to 8 weeks," Michael Tran, commodity strategist at RBC Capital Markets, said June 7 in New York during an RBC executive conference on energy and power.
The July crude oil contract on the New York Mercantile Exchange rose 67¢ on June 7, settling at $50.36/bbl. The August contract also climbed 75¢ to $50.92/bbl.
Natural gas for July rose by less than a penny, closing at a rounded $2.47/MMbtu on NYMEX.
Heating oil for July delivery gained nearly 4¢ to a rounded $1.54/gal. The price for reformulated gasoline stock for oxygenates blending for July decreased less than a penny to remain at a rounded $1.59/gal.
The August Brent crude contract on London's ICE climbed 89¢ to $51.44/bbl. The September contract was up 92¢ to $51.89/bbl. The June gas oil contract rose $11.25 to $456.25/tonne.
The Organization of Petroleum Exporting Countries' basket of crudes price for June 7 was $46.54/bbl, up 54¢.
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AN - China National Offshore Oil Corp. (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.
REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.
IMF - Output grew by 3.8 percent in 2017, underpinned by a resilient non-hydrocarbon sector, with robust implementation of GCC-funded projects as well as strong activity in the financial, hospitality, and education sectors. The banking system remains stable with large capital buffers. Growth is projected to decelerate over the medium term.
IMF - Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging. Inflation declined to its lowest level in more than two years. Real GDP expanded by 2 percent in the first quarter of 2018 compared to the first quarter of last year. However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending.