Prices register more than 1% drop for the week
Crude oil prices fell on Friday, 15 August, 2008 at Nymex after dollar continued to remain strong. A report regarding overall US demand getting hurt due to higher prices also was reflected in the falling prices. Prices also slipped after the weekly inventory report by the Energy Department on last Wednesday showed that crude and crude product supplies declined bigger than expected last week.
Crude-oil futures for light sweet crude for September delivery closed at $113.77/barrel (lower by 1.24 or 1.1%) on the New York Mercantile Exchange. For te week, crude prices ended lower by 1.2%. Before that crude lost $15.92 (11%) in July, 2008, the biggest ever in dollars. Prices are 60% higher than a year ago.
In a monthly oil report issued on Friday, the Organization of the Petroleum Exporting Countries (OPEC) said that oil demand has been "badly hurt" this summer by the slowing economy and high oil prices. Transport and industrial fuels declined the most, sending USA's total oil demand down by 3.8%, or 0.8 million barrels per day in the first seven months of the year.
Last Wednesday, 13 August, EIA reported that crude supplies fell 316,000 barrels to 296.5 million barrels for the week ended 8 August, 2008. Supplies were expected to rise by 300,000 barrels. Refinery utilization dropped to 85.9% of capacity, from 87% a week earlier. EIA also reported that motor gasoline supplies fell by 6.4 million barrels to 202.8 million and distillate stocks were down 1.7 million barrels at 131.6 million barrels.
OPEC, on Friday, reported that it expects total world oil demand to reach an average of 86.90 million barrels per day for 2008, above 2007's 85.90 million. For 2009, it forecasts a rise of 900,000 barrels per day to average 87.8 million. OPEC members have also been increasing production to help calm the markets. OPEC output in July reached 32.64 million barrels per day, a gain of 780,000 barrels per day since April.
At the currency markets on Friday, the dollar's rally extended to a six-month high on as traders continued to react to data showing the economies of five of the Group of Seven industrialized nations contracted during the second quarter. The dollar index, which measures the greenback against a basket of currencies, rose to 77.16 from 76.65 in the previous day.
Earlier last week, the International Energy Agency today reported that tight global oil demand and supply balance, which has helped push up crude prices to record highs, is easing as higher prices and slower economic growth in developed countries is curbing oil demand. Despite that, IEA inched up its 2009 demand estimate for oil products while keeping its 2008 view unchanged. For this year, it estimates oil demand rising 0.9% to 86.9 million barrels of oil a day. For 2009, it estimates rising 1.1% to 87.8 million barrels. In a separate report, the U.S. Energy Department's Information Administration lowered its outlook for oil prices, citing slower demand growth and rising production capacity.
Crude prices had gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. It ended June 2008 higher by 9.9%. For the year, crude is up by 16% till date.
Against this background, September reformulated gasoline fell 5.2 cents, or 1.8%, to close at $2.8602 a gallon, but September heating oil recovered to add 2 cents, or 0.7%, to close at $3.1191 a gallon.
Crude oil prices fell on Friday, 15 August, 2008 at Nymex after dollar continued to remain strong. A report regarding overall US demand getting hurt due to higher prices also was reflected in the falling prices. Prices also slipped after the weekly inventory report by the Energy Department on last Wednesday showed that crude and crude product supplies declined bigger than expected last week.
Crude-oil futures for light sweet crude for September delivery closed at $113.77/barrel (lower by 1.24 or 1.1%) on the New York Mercantile Exchange. For te week, crude prices ended lower by 1.2%. Before that crude lost $15.92 (11%) in July, 2008, the biggest ever in dollars. Prices are 60% higher than a year ago.
In a monthly oil report issued on Friday, the Organization of the Petroleum Exporting Countries (OPEC) said that oil demand has been "badly hurt" this summer by the slowing economy and high oil prices. Transport and industrial fuels declined the most, sending USA's total oil demand down by 3.8%, or 0.8 million barrels per day in the first seven months of the year.
Last Wednesday, 13 August, EIA reported that crude supplies fell 316,000 barrels to 296.5 million barrels for the week ended 8 August, 2008. Supplies were expected to rise by 300,000 barrels. Refinery utilization dropped to 85.9% of capacity, from 87% a week earlier. EIA also reported that motor gasoline supplies fell by 6.4 million barrels to 202.8 million and distillate stocks were down 1.7 million barrels at 131.6 million barrels.
OPEC, on Friday, reported that it expects total world oil demand to reach an average of 86.90 million barrels per day for 2008, above 2007's 85.90 million. For 2009, it forecasts a rise of 900,000 barrels per day to average 87.8 million. OPEC members have also been increasing production to help calm the markets. OPEC output in July reached 32.64 million barrels per day, a gain of 780,000 barrels per day since April.
At the currency markets on Friday, the dollar's rally extended to a six-month high on as traders continued to react to data showing the economies of five of the Group of Seven industrialized nations contracted during the second quarter. The dollar index, which measures the greenback against a basket of currencies, rose to 77.16 from 76.65 in the previous day.
Earlier last week, the International Energy Agency today reported that tight global oil demand and supply balance, which has helped push up crude prices to record highs, is easing as higher prices and slower economic growth in developed countries is curbing oil demand. Despite that, IEA inched up its 2009 demand estimate for oil products while keeping its 2008 view unchanged. For this year, it estimates oil demand rising 0.9% to 86.9 million barrels of oil a day. For 2009, it estimates rising 1.1% to 87.8 million barrels. In a separate report, the U.S. Energy Department's Information Administration lowered its outlook for oil prices, citing slower demand growth and rising production capacity.
Crude prices had gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. It ended June 2008 higher by 9.9%. For the year, crude is up by 16% till date.
Against this background, September reformulated gasoline fell 5.2 cents, or 1.8%, to close at $2.8602 a gallon, but September heating oil recovered to add 2 cents, or 0.7%, to close at $3.1191 a gallon.
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