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Crude oil futures fell on the day while recording a fourth straight weekly gain, supported by a much larger-than-expected drawdown in U.S. crude inventories, renewed hopes that the U.S. Federal Reserve will start cutting interest rates soon, and rising geopolitical risks in the United States. The Middle East.
The weekly report from the US Energy Information Administration showed an overall decline in crude and refined products stocks, a strong 12.2 million barrel draw in inventories, a 2.2 million barrel draw in gasoline stocks and a 1.5 million barrel draw in distillate supplies.
Various data during the week raised hopes of a September interest rate cut by the US Federal Reserve, and European Central Bank President Jerome Powell delivered relatively dovish comments at the ECB conference, acknowledging that inflation finally appears to be moving in the right direction.
On the supply side, Hurricane Beryl has battered Mexico’s Yucatan Peninsula and is expected to make landfall for a second time between Mexico and Texas next week after crossing the Gulf of Mexico; several oil companies have evacuated some staff from offshore platforms, but they do not expect a major impact on production.
Tensions between Israel and Hezbollah also escalated during the week, with the Iran-backed group firing hundreds of rockets at Israeli targets in response to the killing of a senior commander this week, but efforts to secure a ceasefire and the release of hostages in Gaza appeared to gain momentum on Friday.
Nymex crude (CL1:COM) for August delivery ended the week +2% to $83.16 a barrel, including a 0.8% decline on Friday, while September Brent crude (CO1:COM) closed the week +1.8% To $86.54 a barrel, including Friday’s 1% decline.
While crude oil prices have risen for four straight weeks, U.S. natural gas has fallen over the same period, with the NYMEX gas price flat for August. -10.8% To $2.319/MMBtu, including a 4.1% drop on Friday to its lowest settlement since May 10.
Exchange-traded funds:NYSEARCA: Use), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (NRGU), (USOI), (UNG), (BOIL), (KOLD), (UNL), (FCG)
Meanwhile, Saudi Arabia cut the price of all crude grades it sells to Asia, cutting the official selling price for August shipments of its flagship Arab Light crude by $0.60 to $1.80 a barrel above the Oman-Dubai average, a move that highlights the pressure OPEC producers are facing from strong growth in non-OPEC supply.
However, the price of Arab Light crude was reduced. less important than expectedAccording to DNB Markets, traders and refiners are expecting a cut of $0.90 per barrel.
The energy sector, represented by the Select Energy Sector SPDR Fund ETF (XLE), was the worst performer during the abbreviated week, finishing -1.1%.
10 Energy & Natural Resources Companies That Gained in the Past 5 Days: Nano Nuclear Energy (NNE) +75.1%Skina Resources (SKE) +29%Century Aluminum Corporation (CENX) +26.7%Ramaco Resources Corporation (METC) +18.3%Idaho Strategic Resources (IDR) +17%Metals Acquisition (MTAL) +16%Warrior Meat Coal Company (METC) +15.7%Anglo Gold Ashanti (AU) +15.4%US Gold (USAU) +14.4%Sibanye-Stillwater (SBSW) +14.2%.
Top 5 Declining Energy & Natural Resources Companies Over the Past 5 Days: TPI Composites (TPIC) -18.2%Critical Minerals (CRML) -15.8%Clean energy fuels (CLNE) -14.5%Green Plains (GPRE) -13.3%Fluence Energy (FLNC) -13.3%.
Source: Barchart.com