July 14–The price of oil fell for the second straight week on midweek news that Libya will begin exporting crude again.
West Texas Intermediate futures contracts for August delivery on Friday settled at $71.01 per barrel, up 68 cents (0.98 percent) on the day but down $2.79 (3.78 percent) for the week.
Crude tumbled 5 percent Wednesday on concerns that Libya’s reopening of its ports would add to the global crude supply, according to Reuters. Heightening trade tensions between the U.S. and China also sent the price lower.
Strikes in Norway and Iraq on Friday helped boost the price higher, Reuters reported.
Despite the price dip, WTI is 17.62 percent higher for the year. The average price is $65.95 per barrel.
Domestic crude oil production is flat, according to the Energy Information Administration. The EIA reported Wednesday that production held at 10.9 million barrels per day (bbl/d) for the week ending July 6. Imports tumbled 1.3 million bbl/d to 5.4 million bbl/d. Exports dropped 309,000 bbl/d to 2 million bbl/d.
Crude oil refinery inputs averaged 17.7 million bbl/d, down about 1,000 bbl/d. Refineries operated at 96.7 percent capacity. Gasoline production averaged 10.7 million bbl/d, and distillates averaged 5.4 million bbl/d.
Commercial crude supplies fell by 12.6 million barrels to 405.2 million barrels. There were 660 million barrels in the Strategic Petroleum Reserve.
Plains Marketing posted prices also were down this week. The Reporter-Telegram tracks WTI “all other areas” and West Texas sour. The price spread between the two crude grades has been at $10.45 for the past eight trading days.
On Friday, Plains priced WTI at $67.50 per barrel and sour at $57.05, both up 50 cents on the day but down $2.75 for the week. The average price for WTI is $62.44; for sour, the average is $56.84.
In other futures trading Friday, September contracts rose by 60 cents to $69.95 per barrel, October was up 48 cents to $68.55 and November jumped 57 cents to $68.01.
(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.