Crude oil prices gained modestly on the New York market Oct. 9 while oil market participants await more details regarding whether major crude producers might extend or deepen existing production-cut targets.
Investors await the Oct. 11 release of the Organization of Petroleum Exporting Countries monthly report and the Oct. 12 release of the International Energy Agency’s monthly report.
OPEC and some other major producers are working to rebalance oil supply and demand levels, OPEC Sec.-Gen. Mohammed Barkindo said during an energy forum in New Delhi on Oct. 10.
“It is clear that efforts of OPEC and non-OPEC countries have been fruitful,” Barkindo said. The 1.8 million-b/d production-cut targets were extended earlier this year to March 2018.
Some analysts suggest the production-cut targets should be extended yet again. Barkindo said OPEC representatives are talking with US shale oil producers about market rebalancing. “It is a shared responsibility for all,” he told reporters on the conference sidelines.
Separately, Saudi Arabia’s oil ministry officials said Oct. 9 that the kingdom will export 7% less crude by tanker during November compared with the same month last year.
“There has been only a muted response to more comments from OPEC members regarding extending or deepening the supply cut deal, as well as the announcement that Saudi Aramco plans to make deep cuts in crude allocations for November,” JBC Energy said in a note.
Energy prices
The November light, sweet crude contract on the New York Mercantile Exchange gained 29¢ to $49.58/bbl on Oct. 9. The December contract climbed by 28¢ to $49.93/bbl.
The NYMEX natural gas price for November dropped 3¢ to a rounded $2.83/MMbtu. The Henry Hub cash gas price was $2.86/MMbtu, down 6¢.
Heating oil for November declined less than 1¢ to remain at a rounded $1.74/gal. The NYMEX reformulated gasoline blendstock for November edged down less than a penny to remain at a rounded $1.56/gal.
The Brent crude contract for December on London’s ICE added 17¢ to $55.79/bbl. The January contract was up 18¢ to $55.54/bbl. The gas oil contract for October decreased $3 to $517/tonne.
OPEC’s basket of crudes for Oct. 6 was $53.70/bbl, down 77¢.
Contact Paula Dittrick at [email protected].