MARKET WATCH: Crude oil falls on New York, London markets

Oil futures prices dropped on the New York market during Nov. 18 trading, which analysts attributed to renewed concerns that the Federal Reserve might begin to taper its economic-stimulus program soon based upon comments made during a speech by a Fed spokesman.

William Dudley, president of the Federal Reserve Bank of New York, said he was becoming more optimistic about the US economy.

“I have to admit that I am getting more hopeful,” Dudley said during a speech to Queens College in New York. Dudley suggested no timetable, saying only that the Fed will begin to reduce its $85 billion/month bond-buying program when the time is right.

Analysts took his comment as an indication that the timing might be soon although the Fed has been discussing this anticipated measure for months without taking action. The stimulus helps support oil prices by weakening the dollar, making crude oil less expensive to buy using other currencies.

On the London market, Brent crude for January delivery also declined slightly pending the scheduled resumption of international negotiations on Iran’s nuclear program. Representatives of Iran, five permanent members of the UN Security Council, and Germany, plan to meet on Nov. 20.

A potential agreement to restrict Iran’s nuclear program could result in the easing of some international economic sanctions on Tehran, including oil exports.

Energy prices

The New York Mercantile Exchange December crude contract declined 81¢ on Nov. 18 to settle at $93.08/bbl. The January 2014 contract also dropped 81¢, settling at $93.68/bbl.

Heating oil for December delivery was down a rounded 1.7¢ to settle at $2.92/gal on NYMEX. Reformulated gasoline stock for oxygenate blending for December delivery edged down by less than a penny to remain at a rounded $2.66/gal.

The December natural gas contract on NYMEX dropped 4.3¢ to settle at a rounded $3.62/MMbtu. On the US spot market, the gas price at Henry Hub, La., was a rounded $3.69/MMbtu, a 12.4¢ increase.

In London, the January ICE contract for Brent crude oil declined by 3¢, settling at $108.47/bbl. The December contract for ICE gas oil dropped by $1 to $910.25/tonne.

The Organization of Petroleum Exporting Countries reported its basket of 12 benchmark crudes was $105.04/bbl on Nov. 18, down 20¢ from Nov. 15 trading.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

Market watch: Energy futures prices rose slightly Friday

05/06/2002 Crude oil futures prices rose slightly Friday amid lingering uncertainty about a possible disruption of Middle East supplies, although tensions in ...

Gulf of Mexico oil service sector showing signs of an upturn

05/06/2002 The Gulf of Mexico oil service sector is experiencing the signs of an upturn, analysts with Simmons & Co. International, UBS Warburg LLC, and RBC D...

OTC: Industry, national agencies need to work together to make FPSOs work in the gulf

05/06/2002 Over the coming years, the oil and gas industry will have to keep an open line of communication with national agencies such as the US Coast Guard a...

Market watch: Energy futures prices fall as Iraq lifts embargo

05/07/2002 Crude oil futures prices fell Monday after Iraq announced plans to lift a self-imposed export embargo with exports expected to resume by Wednesday.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected