Sam Fletcher
Senior Writer
HOUSTON, June 8 -- Energy prices retreated with profit taking on June 7 as traders expected reports this week of builds in US stocks of refined products.
But the Energy Information Administration said June 8 that commercial US gasoline inventories dipped by 100,000 bbl to 216.6 million bbl during the week ended June 3, while crude stocks fell by 3 million bbl to 330.8 million bbl. Distillate fuel inventories showed the only increase, up by 1.3 million bbl—all in diesel fuel—to 107.7 million bbl.
Crude imports into the US were down by 478,000 b/d to 19.2 million b/d during that period. The input of crude into US refineries declined by 26,000 b/d to 16.1 million b/d with refineries operating at 94.9% of capacity. Gasoline production declined, while distillate fuel production increased slightly, said EIA officials.
Energy prices
The July contract for benchmark US light, sweet crudes lost 73¢ to $53.76/bbl June 7 on the New York Mercantile Exchange. The August contract fell by 75¢ to $54.94/bbl. On the US spot market, West Texas Intermediate was down by 73¢ to $53.77/bbl. Heating oil for July delivery tumbled by 1.57¢ to $1.60/gal on NYMEX. Gasoline for the same month declined by 1.38¢ to $1.52/gal.
The July natural gas contract dipped by 0.5¢ to $7.127/MMbtu "as traders weighed competing signals from a stronger cash [spot] market and the second consecutive daily drop in crude oil prices," said analysts at Enerfax Daily.
"With temperatures about 10° [F] above normal across large swathes of the eastern US, traders are looking past the coming EIA [US natural gas] storage report [to be released June 9], which is expected to register the largest build of the season and yet another expansion of the surplus over normal [storage] levels," they said.
In London, the July contract for North Sea Brent crude declined by 54¢ to $53.67/bbl on the International Petroleum Exchange.
However, the average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes increased by 46¢ to $5 3.13/bbl June 7.
Contact Sam Fletcher at [email protected]
