The US light, sweet crude oil contract for October approached $50/bbl while the November contract settled above $50/bbl Sept. 14 on the New York market. Oil price gains slowed Sept. 15 after North Korea fired a missile over Japan for the second time in a month. The launch came days after the United Nations Security Council adopted fresh sanctions against North Korea.
Oil prices had gained on the New York market for four consecutive trading sessions as of Sept. 14. Earlier this week, the International Energy Agency reported shrinking world oil inventories and the Organization of Petroleum Exporting Countries said its production dropped in August.
In the latest Oil Market Report (OMR), IEA revised upwards its estimates of global oil demand growth in 2017, this time by 100,000 b/d to 1.6 million b/d (OGJ Online, Sept. 13, 2017).
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).
OPEC’s production dropped largely on a steep decline in Libya’s production during August compared with July following renewed civil unrest.
The cartel along with some non-OPEC producers agreed to production-cut targets of 1.8 million b/d last year, and those targets have been extended through March 2018. Libya and Nigeria were exempted from the production-cut targets.
The next joint monitoring committee meeting of OPEC and non-OPEC producers is scheduled in Vienna on Sept. 22. All options, including extending supply cuts beyond March 2018, are being left open, OPEC has said.
In addition, OPEC will hold informal talks on the sidelines of the International Energy Forum in Algeria scheduled Sept. 26-28, said Qatar’s Energy Minister Mohammed bin Saleh al-Sada, who is serving as the cartel’s president this year.
Al-Sada told the Wall Street Journal during August that “OPEC continues to monitor developments closely, and is in constant deliberations with all member states on ways and means to help restore stability and order to the oil market.”
Energy prices
The October light, sweet crude contract on the New York Mercantile Exchange gained 59¢ on Sept. 14 to settle at $49.89/bbl while the November contract climbed 60¢ to settle at $51.35/bbl.
The NYMEX natural gas price for October rose 1¢ to $3.07/MMbtu. The Henry Hub cash gas price climbed 5¢ to $3.04/MMbtu.
Heating oil for October edged up less than 1¢ to a rounded $1.78/gal. The NYMEX reformulated gasoline blendstock for October was down nearly 2¢ to a rounded $1.63/gal on Sept. 14.
The Brent crude contract for November on London’s ICE rose 31¢ to $55.47/bbl. The December contract climbed 33¢ to $55.22/bbl. The gas oil contract for October was $531/tonne, up $4.75.
OPEC’s basket of crudes for Sept. 14 was $53.63/bbl, up 71¢.
Contact Paula Dittrick at [email protected].
