Crude oil futures prices fell on the New York market during Nov. 7 trading, which analysts attributed to macroeconomic fears and a weekly government report showing the US crude oil inventory build was less than analysts had expected.
Meanwhile, natural gas prices fell nearly 2% on the New York Mercantile Exchange on Nov. 7 following forecasts calling for warmer weather for the US in the coming week.
On Nov. 8, the US Energy Information Administration reported a lower-than-expected gas injection into underground storage last week.
EIA said 21 bcf was injected, which was well below the 27 bcf that had been earlier forecast by analysts. In total, EIA reported 3.929 bcf in storage, a new record for this time of year.
Gas in storage was 2.9% above last year's level and 6.6% above the 5-year average, EIA said.
Meanwhile, the Dow Jones Industrial Average dipped by 313 points, or 2.4%, during Nov. 7 trading, which market observers called the biggest drop since Nov. 9, 2011.
J. Marshall Adkins, analyst with Raymond James & Associates Inc., attributed the stock market slump in part to concerns about the global economy and in part to tensions created by the US presidential election.
President Barack Obama was reelected on Nov. 6, and the dip in the Dow reminded Adkins of Obama’s first presidential election.
“The market dropped more than 300 points following Obama’s reelection,” Adkins said. “Interestingly this wasn’t even the largest post-Obama election decline; in 2008 the market fell more than 5%.”
In Greece, new austerity measures were authorized in order for Greece to receive the next phase of bailout financing.
The December contract for benchmark US light, sweet crudes declined by $4.27 to $84.44/bbl Nov. 7 on the NYMEX. The January contract dropped by $4.26 to $83.91/bbl. On the US spot market, West Texas Intermediate at Cushing was down $3.83 to $84.88/bbl.
The front-month December contract for heating oil fell 9¢ to $2.96/gal on NYMEX. Reformulated stock for oxygenate blending for the same month dropped 11¢ to $2.58/gal.
The December natural gas contract fell 3.9¢ to $3.578/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., increased 9.5¢ to $3.47/MMbtu.
In London, the December IPE contract for North Sea Brent fell $4.25 to $106.82/bbl. Gas oil for November dropped $6 to $931/tonne.
The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes rose $1.08 to $106.87/bbl.