MARKET WATCH: Crude oil prices down as US government shutdown lingers
The front month crude oil contract on the New York market dropped to the lowest level on Oct. 15 since it last settled below $100/bbl on July 2.
Analysts said market uncertainty was heightened because the US government shutdown has closed the US Energy Information Administration, preventing the release of EIA’s weekly petroleum inventory report. Without that information, people tend to pull back from trading.
Market participants awaited release of the American Petroleum Institute weekly inventory report during the afternoon of Oct. 16, although the API report normally is not as closely watched as the EIA report.
Another factor dampening trading activity was the Oct. 17 deadline to lift the US borrowing limit. Fitch Ratings said Oct. 15 that it might downgrade the US credit rating by the end of the first quarter 2014.
During the Oct. 15 trading session, the New York Mercantile Exchange November crude contract declined by $1.20, settling at $101.21/bbl. The December contract dropped by $1.07 to $101.41/bbl.
Heating oil for November delivery was down by 1.47¢ to a rounded $3.02/gal on NYMEX. Reformulated gasoline stock for oxygenate blending for November edged down by 0.7¢ to a rounded $2.66/gal.
The November natural gas contract dropped 3¢ to $3.79/MMbtu on NYMEX. The December gas contract settled at a rounded $3.94/MMbtu, giving up 3.1¢. On the US spot market, the gas price at Henry Hub, La., rose to $3.815/MMbtu, up 1.5¢.
On the London market, the November ICE Brent crude oil settled $1.08 lower, closing at $109.96/bbl and down for a third consecutive session on Oct. 15. The November Brent on London's ICE futures exchange expires Oct. 16.
The December contract for Brent fell 82¢ to $109.42/bbl. The November contract for ICE gas oil climbed $8.75 to $940.25/tonne.
The Organization of Petroleum Exporting Countries basket of 12 benchmark crudes was $107.64/bbl on Oct. 15, down 36¢.
Contact Paula Dittrick at [email protected].
Paula Dittrick | Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.