After a hard fall the previous day, crude oil markets saw a mild recovery, an analyst noted. Marc Ground at Standard New York Securities Inc., the Standard Bank Group, said of the gains of both Brent crude and West Texas Intermediate, “Like the equity market, crude oil markets are struggling to shake off negative sentiment over the US fiscal cliff and the dire consequences for US economic growth.”
Ground said, “For its part, the [International Monetary Fund] says that the US needs to achieve a long-term fiscal solution now, as just some sort of stop-gap could roil market sentiment.”
US President Barack Obama, elected Nov. 6 for a second term, was to make public comments on the economic situation and presumably call for Congress to reach an amicable and timely accord on the fiscal cliff. “But until the market has a clear sense that this is achievable, a dark cloud may loom over stocks,” Ground stated.
The December contract for benchmark US light, sweet crudes increased by 65¢ to $85.09/bbl Nov. 8 on the New York Mercantile Exchange. The January contract also rose by 65¢ to $85.56/bbl. On the US spot market, West Texas Intermediate at Cushing was up 65¢ to $85.09/bbl.
The front-month December contract for heating oil fell 0.67¢ to $2.955/gal on NYMEX. Reformulated stock for oxygenate blending for the same month rose 1.84¢ to $2.61/gal.
The December natural gas contract climbed 3¢ to $3.608/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., decreased 3¢ to $3.44/MMbtu.
In London, the December IPE contract for North Sea Brent rose 43¢ to $107.25/bbl. Gas oil for November delivery dropped $10.50 to $920.50/tonne.
The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes fell $2.29 to $104.58/bbl.