MARKET WATCH: NYMEX oil prices fall on US crude inventory gain
Crude oil prices on the New York market dropped in volatile trading Nov. 8 after a weekly US government inventory report showed a gain in crude supplies and rising production.
Analysts also noted reports of a fire on Shell Oil Co.’s Enchilada oil platform in the Gulf of Mexico about 112 nautical miles south of Vermilion Bay, La.
Two people were injured, the US Coast Guard said, adding the crew was evacuated to a nearby platform.
Shell issued a statement saying it shut in Enchilada along with Salsa and Auger platforms and nearby fields. A 30-in. gas export pipeline also was shut. Shell said the fire at Enchilada was contained.
The Weekly Petroleum Status Report showed US commercial crude stockpiles gained 2.2 million bbl during the week ended Nov. 3 compared with the previous week. The US Energy Information Administration latest stockpile estimate, excluding the Strategic Petroleum Reserve, was 457.1 million bbl (OGJ Online, Nov. 8, 2017).
Total US oil production for the week ended Nov. 3 was 9.6 million b/d, up 67,000 b/d. Production across the Lower 48 accounted for 65,000 of that increase with the latest Lower 48 production at 9.1 million b/d.
Alaska’s production was 509,000 b/d, up 2,000 b/d.
Energy prices
The December light, sweet crude contract on the New York Mercantile Exchange declined 39¢ on Nov. 9 to $56.81/bbl. The January 2018 contract lost 38¢ to $57.05/bbl.
The NYMEX natural gas price for December increased 2¢ to a rounded $3.17/MMbtu. The Henry Hub cash gas price was $3.15/MMbtu, down 7¢.
Heating oil for December edged down less than a penny to remain at a rounded $1.92/gal. The NYMEX reformulated gasoline blendstock for December rose less than a penny to remain at a rounded $1.82/gal.
The Brent crude contract for January 2018 on London’s ICE dropped 20¢ to $63.49/bbl. The February 2018 contract lost 19¢ to $63.28/bbl. The gas oil contract for November fell 50¢ to $563/tonne.
OPEC’s basket of crudes on Nov. 8 was $61.61/bbl, down 46¢.
Contact Paula Dittrick at [email protected].
Paula Dittrick | Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.