MARKET WATCH: Brent oil prices gain while NYMEX prices fall
Light, sweet crude prices fell on the New York market Oct. 9 while Brent crude prices gained on the London market as oil investors awaited the resumption of US-China trade talks, scheduled for Washington, DC, on Oct. 10-11.
Ole Hansen, head of commodity strategy for Saxo Bank, said light, sweet crude oil “bounced on renewed trade optimism ahead of the Weekly Petroleum Status Report from the US Energy Information Administration.”
Hansen said reports that China might be open to a partial deal helped support oil prices while Turkish troop movements on the Syrian border likely discouraged oil investors.
“While the pendulum continues to swing between demand-and-supply worries, we suspect that West Texas Intermediate and Brent will stay range-bound around $55/bbl and $60/bbl, respectively,” Hansen said.
US crude oil inventories, excluding the Strategic Petroleum Reserve, increased by 2.9 million bbl for the week ended Oct. 4, said the EIA. At 425.6 million bbl, US crude oil inventories are at the 5-year average for this time of year, EIA said.
US oil production increased to 12.6 million b/d for the week ended Oct. 4, up 200,000 b/d from the week ended Sept. 27, EIA’s Weekly Petroleum Status Report also said.
Energy prices
Light, sweet crude oil prices on the New York Mercantile Exchange for November fell 4¢ to $52.59/bbl on Oct. 9 while the December contract dropped 1¢ to $52.61/bbl.
The natural gas price for November delivery fell 5¢ to $2.23/MMbtu.
Ultralow-sulfur diesel for November gained less than a penny to a rounded $1.92/gal. The NYMEX reformulated gasoline blendstock for November edged down less than 1¢ to $1.58/gal.
Brent crude for December gained 8¢ to $58.32/bbl. The January contract was up 8¢ to settle at $57.87/bbl.
Gas oil for October climbed $12.50 to $591.25/tonne on Oct. 9. The Organization of Petroleum Exporting Countries’ basket of crudes on Oct. 9 averaged $58.65/bbl, up 12¢.
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.
