MARKET WATCH: NYMEX gains nearly $1 on OPEC comments, US-China trade talks
Light, sweet crude prices gained nearly $1/bbl on the New York market Oct. 10 while Brent crude prices gained in London with the December contract settling above $59/bbl. Natural gas futures continued their overall decline, falling to $2.22/MMbtu on oversupply worries.
Traders noted that oil prices continued to climb in early Oct. 11 trading. Investors watched for signs of tension in the Middle East that could disrupt oil supply. Days ago, US President Donald Trump ordered the withdrawal of US troops from Syria.
A top official of the Organization of Petroleum Exporting Countries said OPEC was considering all options, including making a bigger supply cut to help balance oil markets.
OPEC Sec.-Gen. Mohammad Barkindo said Oct. 10 that a decision would be made during a December meeting between OPEC and its non-OPEC allies on the existing production cut.
In its Monthly Oil Market Report, OPEC lowered its 2019 global oil demand growth forecast to 980,000 b/d while leaving its 2020 demand growth estimate unchanged at 1.08 million b/d.
Meanwhile, oil investors monitored ongoing US-China trade talks in Washington, DC.
Energy prices
Light, sweet crude oil prices on the New York Mercantile Exchange for November rose 96¢ to $53.53/bbl on Oct. 10 while the December contract increased 95¢ to $53.56/bbl.
The natural gas price for November delivery fell 1¢ to $2.22/MMbtu.
Ultralow-sulfur diesel for November gained less than 1¢ to hold at a rounded $1.92/gal. The NYMEX reformulated gasoline blendstock for November rose 3¢ to $1.62/gal.
Brent crude for December gained 78¢ to $59.10/bbl. The January contract was up 81¢ to settle at $58.65/bbl.
Gas oil for October held unchanged at $591.25/tonne on Oct. 10. OPEC’s basket of crudes on Oct. 10 averaged $58.71/bbl, up 6¢.
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.
