June 30–The price of oil rose 8 percent this week and settled Friday at a new year high.
West Texas Intermediate contracts for August delivery closed Friday at $74.15 per barrel, up 70 cents on the day. The U.S. is preparing to sanction OPEC producer Iran, which will take millions of barrels off the market, according to wire reports. The loss of Iranian crude on the world market could undo OPEC and Russia’s recently agreed-upon production increases.
Much of the price gain occurred Tuesday and Wednesday when the news broke. WTI grew by $4.78 (6.76 percent) in those two days and rose nearly 1 percent each consecutive day. The Energy Information Administration’s midweek crude oil inventories report also helped push prices higher.
On Wednesday, the EIA reported commercial crude supplies fell by nearly 10 million barrels to 416.6 million barrels. The Strategic Petroleum Reserve was unchanged at 660 million barrels. The reporting week was for June 22.
Domestic crude production was flat at 10.9 million barrels per day (bbl/d). Imports rose by 114,000 bbl/d to 8.356 million bbl/d. Exports were up 626,000 bbl/d to 3 million bbl/d.
Crude oil refinery inputs averaged 17.8 million bbl/d, the EIA reported, about 115,000 bbl/d more than last week. Refineries operated at 97.5 percent capacity. Gasoline production averaged 10.1 million bbl/d, and distillates averaged 5.4 million bbl/d.
The national average retail regular gasoline price was $2.833 per gallon on June 25, a decrease of 4.6 cents lower than a week ago. The average price for diesel was $3.216 per gallon, down 2.8 cents.
The average price for a barrel of WTI this year is $65.46. The year low is $59.19. The price is up $13.78 (22.83 percent) on the year. There have been 125 trading days this year.
Plains Marketing posted prices continue to maintain a wide spread between WTI “all other areas” and West Texas sour. The spread between the crude grades has been $11.70 for the past 21 trading days. A previous Reporter-Telegram report attributed the wide gap to pipeline capacity restraints, which also has kept the price of WTI in Midland at a steep discount to WTI in Cushing and Brent crude, the international benchmark.
Friday marked a new year high for the WTI posted price at $70.50, up 50 cents. Sour also was up a half dollar, fetching $58.80. Sour’s year high is $61.45, and its low is $49.55. The lowest price for WTI this year is $55.50.
The average price for WTI posted is $61.95 per barrel. Sour’s average is $56.69.
In other futures trading Friday, September contracts jumped 65 cents to $72.46, October rose 58 cents to $60.92 and November was up $65 cents to $70.16.
Trading will be closed Wednesday in observance of the July Fourth holiday.
(c)2018 the Midland Reporter-Telegram (Midland, Texas)
Visit the Midland Reporter-Telegram (Midland, Texas) at www.mywesttexas.com
Distributed by Tribune Content Agency, LLC.