The US light, sweet crude oil contract for October gained slightly on Sept. 12 on the New York market as did Brent crude oil prices in London after the Organization of Petroleum Exporting Countries reported a production drop.
Secondary sources estimated OPEC’s oil production fell 79,000 b/d in August to 32.76 million b/d compared with July. It was the first time since April that the cartel’s production dropped (OGJ Online, Sept. 12, 2017).
On Sept. 13, the International Energy Agency said world oil supplies fell during August, marking the first drop in 4 months. IEA also increased its 2017 oil demand estimate to 1.6 million b/d compared with its July estimate of 1.5 million b/d.
Commercial oil inventories in the Organization for Economic Cooperation and Development stayed flat in July month-on-month at 3.016 billion bbl, IEA said. That was about 190 million bbl above the 5-year average.
The US government on Sept. 13 was expected to report a weekly rise in US crude inventories. Traders and analysts polled by the Wall Street Journal said they anticipated a rise of 3.7 million bbl for the week ended Sept. 8.
Separately, the American Petroleum Institute reported its own calculations showing US crude supplies rose 6.2 million bbl for the week ended Sept. 8 and gasoline supplies fell 7.9 million bbl.
Hurricane Harvey disrupted oil production and refinery operations along the Texas and Louisiana coasts.
Energy prices
The October light, sweet crude contract on the New York Mercantile Exchange gained 16¢ on Sept. 12 to settle at $48.23/bbl while the November contract climbed 13¢ to settle at $48.75/bbl.
The NYMEX natural gas price for October rose 5¢ to $3/MMbtu. The Henry Hub cash gas price was up 4¢ to $2.89/MMbtu.
Heating oil for October edged down less than 1¢ to remain at a rounded $1.74/gal. The NYMEX reformulated gasoline blendstock for October was up 2¢ to a rounded $1.66/gal on Sept. 12.
The Brent crude contract for November on London’s ICE rose 43¢ to $54.27/bbl. The December contract climbed 34¢ to $54.03/bbl. The gas oil contract for October was $518/tonne, up $1.25.
OPEC’s basket of crudes for Sept. 12 was $52.08/bbl, up 16¢.
Contact Paula Dittrick at [email protected].
