MARKET WATCH: NYMEX oil prices touching $50/bbl on Syria concerns
Light, sweet crude oil prices for November delivery gained more than $1/bbl to close at $49.43/bbl on the New York market Oct. 8 after having briefly touched a trading session high of $50.07/bbl. Meanwhile, the Brent crude oil contract for November delivery closed above $53/bbl.
Analysts attributed the crude price support to a weakening dollar and concerns that Russia’s military involvement in Syria could increase geopolitical tensions and the risk of a crude oil supply disruption from the Middle East over the long term.
“Part of this week’s rally has been due to some additional geopolitical premium being priced in,” said Olivier Jacob at Petromatrix. “Crude oil futures are having their best week since the last week of August.”
The Federal Reserve on Oct. 8 released its September policy meeting minutes, which showed that Fed officials held off on raising interest rates because of concerns about low inflation.
Energy prices
The November crude oil contract on the New York Mercantile Exchange closed up $1.62 to $49.43/bbl on Oct. 8, and the December crude oil contract gained $1.60 to $50/bbl.
The natural gas contract for November gained 2.4¢ to a rounded $2.50/MMbtu. The Henry Hub, La., gas price dropped 2¢ to $2.44/MMbtu.
Heating oil for November delivery was up 2¢ to rounded $1.60/gal. The price for reformulated gasoline stock for oxygenates blending for November was up a rounded 1.8¢ to a rounded $1.41/gal.
The November ICE contract for Brent crude increased $1.72 to $53.05/bbl, and the December contract gained $1.61 to settle at $53.38/bbl. ICE gas oil for November settled at $486.25/tonne, down $2.50.
The average price for the OPEC basket of 12 benchmark crudes was $48.10/bbl on Oct. 8, down 14¢.
Contact Paula Dittrick at [email protected]
*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.
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.
