MARKET WATCH: NYMEX, Brent crude prices close Feb. 16 with weekly high
Light, sweet crude oil prices on the New York market and Brent prices in London ended at a single-week high on Feb. 16, which analysts attributed to a smaller-than-expected build in US crude oil inventories.
Although the US crude oil inventory built for a third consecutive week, analysts said investors generally believe, at least for now, that supply is not building fast enough to overwhelm world oil markets despite rising US oil production.
The US Energy Information Administration estimated commercial crude oil inventories, excluding the Strategic Petroleum Reserve, increased 1.8 million bbl to 422.1 million bbl during the week ended Feb. 9 compared with the previous week (OGJ Online, Feb. 14, 2018).
It was the third consecutive weekly oil inventory increase. EIA’s Weekly Petroleum Status Report also said US oil production reached 10.271 million b/d for the week ended Feb. 9, up 20,000 b/d from the previous week.
Production across the Lower 48 was up 25,000 b/d to 9.752 million b/d while Alaska’s production fell 5,000 b/d to 519,000 b/d for the week ended Feb. 9 compared with the previous week.
Energy prices
The March light, sweet crude contract on the New York Mercantile Exchange gained 34¢ on Feb. 16 to settle at $61.68/bbl. The April contract rose 38¢ to $61.55/bbl.
The NYMEX natural gas price for March fell 2¢ to a rounded $2.56/MMbtu. The Henry Hub cash gas price dropped 1¢ to $2.48/MMbtu.
Ultralow-sulfur diesel for March increased by nearly 2¢ to a rounded $1.91/gal. The NYMEX reformulated gasoline blendstock for March gained a rounded 2¢ to a rounded $1.75/gal.
Brent crude oil for April settled up 5¢ to $64.84/bbl on London’s ICE. The May contract also was up by 5¢ to $64.53/bbl. The gas oil contract for March was $570.25/tonne, up $27.
The Organization of Petroleum Exporting Countries’ basket of crudes was $62.41/bbl on Feb. 16 up 32¢.
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.
