MARKET WATCH: NYMEX crude prices drop more than $1/bbl

Nov. 15, 2017
Light, sweet crude oil futures dropped more than $1/bbl on Nov. 14 in New York as did the Brent crude oil contract for February delivery in London as it settled just above $62/bbl.

Light, sweet crude oil futures dropped more than $1/bbl on Nov. 14 in New York as did the Brent crude oil contract for February delivery in London as it settled just above $62/bbl.

Oil prices dropped after the International Energy Agency cut its world oil demand forecast for 2017-18 by 100,000 b/d. EIA forecast demand growth of 1.5 million b/d this year and 1.3 million b/d in 2018 (OGJ Online, Nov. 14, 2017).

The American Petroleum Institute reported late Nov. 14 that its oil inventory data showed an increase of 6.5 million bbl in US crude stockpiles and a build of products for the week ended Nov. 10.

The US Energy Information Administration, meanwhile, was scheduled to release its own weekly inventory report on Nov. 15.

“If the EIA data confirms the API data, it’s going to be difficult to have a strong rebound,” said Olivier Jakob of Petromatrix. Without what he calls “significant” US oil stock draws, Jakob doubts Brent will stay above $60/bbl or light, sweet crude will stay above $55/bbl.

Energy prices

The December light, sweet crude contract on the New York Mercantile Exchange dropped $1.06 on Nov. 14 to $55.70/bbl. The January 2018 contract declined $1.08 to $56.89/bbl.

The NYMEX natural gas price for December fell 6.5¢ to a rounded $3.10/MMbtu. The Henry Hub cash gas price was $3.08/MMbtu, down 4¢.

Heating oil for December fell 2¢ to a rounded $1.91/gal. The NYMEX reformulated gasoline blendstock for December dropped a rounded 3¢ to $1.76/gal.

The Brent crude contract for January 2018 on London’s ICE decreased 95¢ to $62.21/bbl. The February 2018 contract fell $1.04 to $62.06/bbl. The gas oil contract for December was down $14.75 to $550.50/tonne.

The Organization of Petroleum Exporting Countries’ basket of crudes on Nov. 14 was $60.52/bbl, down 75¢.

Contact Paula Dittrick at [email protected].