Poten’s Crude Oil Highlights

23 Jun 2015: Reported oil data for the US was bullish for oil prices this week.  Oil production declined off the previous week’s peak, in the latest EIA report.  In addition, there was another drop in US oil inventories, fewer operating oil-drilling rigs and a softer US Dollar. US crude production fell by 21 thousand barrels a day in the latest weekly EIA report.  Production was at 9.589 million barrels a day for the June 12 report.  US crude inventories declined for a seventh straight week.  Crude oil inventories were at 467.9 million barrels, which is down 2.7 million barrels (excluding the Strategic Petroleum Reserve). The number of active oil drilling rigs in the US continues to decline.  The oilrig count was reduced by four in this week’s Baker Hughes assessment, going down to 631.  Active crude oilrigs have now declined 28 consecutive weeks. Crude oil markets firmed modestly this week for key benchmark grades.   July West Texas Intermediate (WTI) crude prices at Cushing, Oklahoma ended the week at $59.61 a barrel, down $0.35 a barrel versus the previous week.  August WTI closed at $59.97 a barrel.  The US Dollar slipped somewhat lower this week against most currencies. August Brent prices ended the week at $63.02 a barrel, down $0.85 a barrel versus the previous Friday close for July.  The Brent price premium over WTI for August crude declined to just above $3 a barrel.   The Brent premium has dropped each week for over a month. Western Canadian Select crude (WCS) prices firmed slightly this week.  July WCS prices eased, to just over $52 a barrel FOB Alberta this week.  WCS prices for July were about $7.50 a barrel under July WTI, while August WCS is about $10 under August WTI.