Front-month Brent crude prices rose on Thursday after a power outage shut production at Britain’s largest oilfield and as the August contract approached expiration. U.S. crude futures settled lower after giving up gains reacting to data from industry intelligence firm Genscape showing higher crude inventories at the Cushing, Oklahoma, hub, traders said.
Expiring Brent August crude LCOQ5 rose 46 cents to settle and go off the board at $57.51 a barrel, having reached $58.21. September Brent crude LCOU5 fell 20 cents to settle at $56.92, off its $58 intraday peak. August Brent moved to a premium to September LCOc1-LCOc2 and reached 75 cents intraday, the highest for front-month Brent to the nearby month since June 2014, according to Reuters data.
U.S. August CLc1 crude fell 50 cents to settle at $50.91, having swung from $50.34 to $52.71. “Another build at Cushing would be bearish for U.S. crude, and the Buzzard outage and contract expiration are supporting Brent,” said Phil Flynn, analyst at Price Futures Group in Chicago.