The crude oil contract for November delivery gained nearly $1 on the New York market Oct. 13 to settle above $51/bbl and rose above $52/bbl in early trading Oct. 16, which analysts attributed to tensions about US policy in the Middle East.
US President Donald Trump is threatening to end US certification of a 2015 nuclear agreement with Iran.
Meanwhile, tensions remain between the Iraqi central government and the Kurdish semiautonomous region, prompting concerns about possible disruption in future oil supplies.
Iraqi forces had skirmishes with Kurdish fighters in the oil-rich province of Kirkuk early Oct. 16 in a standoff over Kurdish independence, Iraqi and Kurdish officials said. Four Iraqi army vehicles reportedly were involved in an explosion. The cause of the blast was being investigated.
Separately, Baker Hughes said the US rig count for the week ended Oct. 13 declined for the eighth time in 11 weeks. But forecasters continued to foresee drilling and production growth supported in part by steadier crude oil prices.
Baker Hughes’ tally of active rigs fell 8 units to 928. US oil-directed rigs dropped for the seventh time in 9 weeks, shedding 5 units to 743, down 25 units since their recent peak on Aug. 11. Gas-directed rigs lost 2 units to 185 but have remained 180 or above since May. The country’s only unclassified rig also went offline (OGJ Online, Oct. 13, 2017).
Energy prices
The November light, sweet crude contract on the New York Mercantile Exchange rose 85¢ to $51.45/bbl on Oct. 13. The December contract was up 80¢ to $51.73/bbl.
The NYMEX natural gas price for November rose 1¢ to $3/MMbtu. The Henry Hub cash gas price was $3.01/MMbtu, up 10¢.
Heating oil for November increased 3¢ to $1.79/gal. The NYMEX reformulated gasoline blendstock for November rose 4¢ to a rounded $1.62/gal.
The Brent crude contract for December on London’s ICE climbed 92¢ to $57.17/bbl. The January contract was up 88¢ to $56.95/bbl. The gas oil contract for October increased $12.25 to $533.75/tonne.
The Organization of Petroleum Exporting Countries’ basket of crudes for Oct. 13 was $55.12/bbl, up 68¢.
Contact Paula Dittrick at [email protected].