August 2019 Monthly Average Crude Oil Price

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The monthly average U.S.-dollar price of West Texas Intermediate (WTI) crude oil retraced most of July’s gain, falling by $2.55 (-4.4%), to $54.81 per barrel in August. The decrease occurred within the context of a noticeably stronger U.S. dollar, and continued declines in accumulated oil stocks (August average: 434 million barrels). The volume of petroleum products supplied in June was not yet published when this post was being written. 

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Publication of Peak Oil Review remained on hiatus as of the time of this post. 

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Selected highlights from the 3 September 2019 issue of OilPrice.com’s Intelligence Report include:

OPEC production rose in August for first time in 2019. OPEC production rose by 200,000 bpd in August, the first collective increase since the OPEC+ cuts took effect at the start of the year. Gains came from Saudi Arabia, Nigeria and Iraq.

U.S. oil production slows. The latest EIA data shows monthly U.S. oil production falling to 12.082 mb/d in June, a slight decrease from the month before. The figures show a decline in some states, while only tepid growth in Texas. The data offers more evidence of a slowdown in production growth from the shale patch.

U.S. truck makers report lower orders. U.S. truck manufacturers report sharply lower orders, another sign of an economic slowdown. Trade tariffs and a slowdown in manufacturing is reducing demand for freight. Rates for freight have declined 20 percent since June 2018, according to The Wall Street Journal.

Hedge funds cut positions in oil. Hedge funds and other money managers have become a bit more pessimistic on crude oil, cutting their net-length in the futures market last week for the third time in the last four weeks.

The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.