The price for light, sweet crude oil for October delivery regained momentum after stalling briefly on the New York market Aug. 31 to settle above $49/bbl, hitting the highest closing price in nearly 6 weeks and marking the third consecutive day of an oil-price rally.
The US Energy Information Administration reported a 1.1% decline in monthly crude oil production for June compared with revised May statistics (OGJ Online, Sept. 1, 2015). Estimated US crude oil production in June was 9.3 million b/d compared with 9.6 million b/d in April.
Separately, the Organization of Petroleum Exporting Countries issued a monthly bulletin Aug. 31 saying “continuing pressure on prices, brought about by higher crude production, coupled with market speculation, remains a cause of concern for OPEC and its members.”
On Sept. 1, the Wall Street Journal reported China National United Oil Corp., the trading division of China National Petroleum Corp., recently bought nearly 90% of the oil cargoes on the Dubai spot market during August.
WSJ said traders involved in the Dubai market believe those purchases distorted prices, making them higher than they would have been otherwise.Click here to read the rest of that article.
So far today, however, the rallying trend has not continued for oil prices.
Crude Oil (WTI) on the move in Tuesday trading. Down -3.50 or -7% to 45.64 bbl. $USO $XLE (60-min chart) pic.twitter.com/uYn0symluh— Jack Damn (@JackDamn) September 1, 2015
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