Oil prices were lower for the July 22 week. For the week, WTI oil ended at $44.21 after starting the week at $45.23.
The week’s two leading oil reports had the greatest impact on trading for the week. Wednesday’s Energy Information Administration Petroleum Status Report showed crude oil inventories remaining basically unchanged with a decrease of 2.3 million barrels. The week’s report followed a decrease of 2.5 million barrels in the previous week. Despite two weekly decreases, oil inventories still remain at high seasonal levels. The current oil inventories are 12% higher than a year ago.
On Friday the Baker Hughes North American Rig Count Report showed oil rigs in North America continuing to increase. The total North American rig count increased to 564 from 542. The U.S. increased its rig count by 15. Canada increased its rig count to 102 for an increase of seven. The Gulf of Mexico’s rig count was lower at 18 which was a decrease of three. The higher total rig count was a factor affecting the week’s lower prices.
While oil prices continued to decrease, stock valuations continued to gain for the week. The Dow Jones Industrial Average was up 0.28 % and the Standard & Poor's 500 gained 0.60%. The energy sector overall was lower with a loss of 1.31%. Chesapeake Energy (CHK, Financial) led gains in energy for the week while Murphy Oil (MUR, Financial) led losses.
In a CNBC report on Friday, market specialists discussed the divergence in oil prices and stock prices and how oil is affecting broader market valuations.
Disclosure: I do not own any stocks included in this article.
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