Oil Eases On Weak US Fuel Demand, Profit Taking
(MENAFN- The Peninsula)
The Peninsula
Doha, Qatar: Oil prices fell on Friday as investors weighed weak US fuel demand and took some money off the table at quarter-end, while key inflation data for May boosted the chances the federal Reserve will start to cut interest rates this year. brent crude futures for August settlement, which expired on Friday, settled up 2 cents at $86.41 a barrel, noted Al-Attiyah Foundation in its Weekly energy market Review.
US West Texas Intermediate (WTI) crude futures settled 20 cents lower, or 0.24%, to $81.54. For the week, Brent rose 1.4% while WTI futures rose 1.0%.
Both benchmarks gained around 6% for the month. While US oil production and demand rose to a four-month high in April, demand for gasoline fell to 8.83 million barrels per day, its lowest since February, according to the Energy Information Administration's Petroleum Supply Monthly report published on Friday.
The US personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, was flat in May, lifting hopes for rate cuts in September. Still, the reaction in financial markets was minimal. The US active oil rig count, an early indicator of future output, fell by six to 479 this week, the lowest level since December 2021, energy services firm Baker Hughes said.
Asian spot liquefied natural gas (LNG) prices held steady this week as forecasts of higher temperatures during the summer months in the northern hemisphere kept demand elevated for electricity used for cooling purposes. The average LNG price for August delivery into north-east Asia was at $12.50 per million British thermal units (mmBtu), industry sources estimated, slightly down from $12.60 per mmBtu the previous week.
Cooling power demand continues to underpin northeast Asian LNG demand as Asian buyers have been seeking late summer cargo deliveries. LNG stocks held by Japan's major electricity utilities, a key and the most recent indicator of the stockpile level, was last at 2.08 million metric tons as of June 23, down from 2.14 million metric tons a week ago, according to data released by the Ministry of Economy, Trade and Industry (METI).
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