Oil futures finished lower Friday, with pressure attributed in part to downbeat global demand forecasts from major organizations this week, but prices still ended the week higher following declines in U.S. supplies. Oklahoma-related stocks generally finished the week on the upward scale.
West Texas Intermediate crude for September delivery fell 23 cents or 0.5% to $42.01 a barrel in trading on the New York Mercantile Exchange. Global benchmark Brent Crude dropped 16 cents or 0.4% at $44.80 a barrel in trading in the ICE Futures Europe.
“Future demand expectations have been dialed back this week” by the Organization of the Energy Information Administration, the Organization of the Petroleum Exporting Countries and the International Energy Agency, said Michael Hewson, chief market analyst at CMC Markets UK, in a market update reported MarketWatch.
In a monthly report Thursday, the IEA said it expects 2020 global oil demand to contract by 8.1 million barrels a day to 91.9 million barrels a day, year over year. OPEC’s monthly report issued Wednesday called for a larger fall of 9.1 million barrels a day in 2020 demand growth for global petroleum and liquid fuels to 90.6 million barrels per day, while a monthly report from EIA Tuesday forecast 2020 demand at 93.1 million barrels a day, down 8.1 million from 2019.
“The demand outlook remains a function of the virus and where it strikes next, while the impasse in Washington over a relief act creates uncertainty as to its magnitude and impact,” Marshall Steeves, energy markets analyst at IHS Markit, told MarketWatch.
For the week, WTI ended 1.9% higher, while Brent gained 0.9%, according to Dow Jones Market Data.
“Global supplies are tightening with fewer Saudi loadings headed for the U.S. and production in the U.S. falling again,” said Steeves.
In a weekly report Wednesday, the EIA reported a weekly fall of 300,000 barrels per day to 10.7 million barrels per day in total U.S. oil production, along with a decline of 4.5 million barrels in crude inventories—the third weekly drop in a row.
“The crude stock draw in the latest week left inventory levels elevated even as production and imports fell,” Steeves said. “The crude oil stock draw in the latest week only slightly dented the surpluses, now 17% above a year ago and 15% above the five-year average.”
However, U.S. production has fallen below 11 million barrels per day, he said.
Local energy stocks responded in Friday’s trading as Devon Energy saw a 28 cent increase or 2.37% settling at $12.12 a share.
SandRidge Energy gained 20 cents or 12.05% to settle at $1.86. Chesapeake Energy dropped 3..06% or 22 cents before finishing the day at $6.98 a share.
NGL Energy Partners dropped 6 cents or 1.37% to settle at $4.33. Mammoth Energy Services saw a 2 cent a share decline or 1.24% to end the day at $1.63.
Williams Cos. Inc. went up 56 cents for a 2.60% gain at $22.13 a share. Blueknight Energy increased one cent or 0.65% to settle at $1.54. Cypress Environmental Partners LP dropped 8.83% or 25 cents before ending Friday’s trading at $2.58.
Continental Resources Inc. gained 1.25% or 23 cents and settled at $18.58 per share.
ConocoPhillips (COP) up 0.19 at 40.82 – change 0.46%
Diamondback Energy (FANG) up 0.93 at 45.51 – change 2.08%
Energy Transfer LP (ET) up 0.07 at 6.62 – change 1.06%
EOG Resources (EOG) up 0.55 at 47.97 – change 1.15%
ExxonMobil (XOM) up 0.19 at 43.20 – change 0.44%
Kinder Morgan (KMI) up 0.02 at 14.29 – change 0.14%
Marathon Oil Corp. (MRO) up 0.16 at 6.05 – change 2.71%
National Oilwell Varco (NOV) up 0.09 at 13.12 – change 0.69%
Noble Energy (NBL) up 0.04 at 10.61 – change 0.42%
Occidental Petroleum (OXY) up 0.04 at 14.64 – change 0.27%
ONEOK (OKE) up 0.68 at 29.49 – change 2.36%
Parsley Energy (PE) up 0.19 at 12.28 – change 1.57%
Phillips 66 (PSX) up 1.03 at 63.66 – change 1.64%
Pioneer Natural Resources (PXD) up 0.79 at 110.73 – change 0.71%
Valero (VLO) up 1.27 at 54.46 – change 3.38%.
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CLOSING TOP UTILITY STOCKS
American Electric Power (AEP) down 0.71 at 82.95 – change 0.85%