MARKET WATCH: Crude oil prices drop slightly on world economic concerns
Light, sweet crude oil prices dropped slightly, holding flat at less than $53/bbl on Oct. 7 on the New York market. Brent crude oil prices settled mixed with the December contract down slightly but holding about $58/bbl while the January contract gained to settle above $57.80/bbl.
Analysts say indicators of an economic slowing has investors concerned about world oil consumption for the rest of 2019 and 2020.
US-China trade talks are scheduled to resume Oct. 10 when Chinese Vice Premier Liu He plans to visit Washington, DC.
“Reports suggest that Chinese officials have whittled back the menu of themes they are willing to discuss, and this could prompt investors to maintain defensive tactics,” Kenneth Broux , Societe Generale head of corporate research, said in a research note.
On Oct. 8, the US Department of Commerce placed eight Chinese companies dealing in video surveillance and artificial intelligence on a list restricting US firms from selling technology to them.
However, US President Donald Trump’s administration said it would not remove US-listed Chinese companies from US stock exchanges despite earlier media reports that suggested that.
Energy prices
Light, sweet crude oil prices on the New York Mercantile Exchange for November fell 6¢ to $52.75/bbl on Oct. 7 while the December contract dropped 3¢ to $52.71/bbl.
The November natural gas price declined by a rounded 5¢ to $2.30/MMbtu on Oct. 7.
Ultralow-sulfur diesel for November gained less than 1¢ to $1.90/gal. The NYMEX reformulated gasoline blendstock for November edged down by less than 1¢ to remain at a rounded $1.57/gal.
Brent crude for December fell 2¢ to $58.35/bbl. The January contract was up 8¢ to settle at $57.82/bbl.
Gas oil for October gained $9 to $588.75/tonne on Oct. 7. The Organization of Petroleum Exporting Countries’ basket of crudes on Oct. 7 averaged $59.09/bbl, up 50¢.
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.
