MARKET WATCH: Light, sweet crude prices settle below $48/bbl
Light, sweet crude oil prices on the New York Mercantile Exchange declined by more than $1 on the New York market to settle below $48/bbl on Aug. 21 but prices moved up again Aug. 22 on expectation of another weekly decline in US crude inventories.
The American Petroleum Institute was scheduled to release its own preliminary inventory data later Aug. 22 for the week ended Aug. 18. Separately, the US Energy Information Administration releases its weekly report on oil and product supplies on Aug. 23.
In other news, BHP Billiton Ltd. announced it was actively pursuing options to exit its underperforming US shale oil and gas business. Chief Executive Officer Andrew Mackenzie gave no specifics on a possible timetable.
“We certainly have plenty of people interested in taking a look,” Mackenzie told reporters during an earnings call on Aug. 21. “The shale acquisitions were poorly timed. We paid too much.”
Mackenzie reiterated BHP’s commitment to its conventional oil and gas business, including Gulf of Mexico operations.
Energy prices
The September light, sweet crude contract on NYMEX fell $1.14 on Aug. 21 to settle at $47.37/bbl while the October contract fell $1.13 to settle at $47.53/bbl.
The NYMEX natural gas price for September gained nearly 7¢ to a rounded $2.96/MMbtu. The Henry Hub cash gas price was $2.98/MMbtu, up 9¢.
Heating oil for September decreased nearly 5¢ to a rounded $1.57/gal. Reformulated gasoline stock for oxygenate blending for September was down 4¢ to a rounded $1.58/gal.
The Brent crude contract for October on London’s ICE fell $1.06 to $51.66/bbl. The November contract dropped $1.13 to $51.28/bbl. The September gas oil contract was down $1.50 on Aug. 21 to $472.25/tonne.
The Organization of Petroleum Exporting Countries’ basket of crudes on Aug. 21 was $49.80/bbl, up 94¢.
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.
