The light, sweet crude price for February delivery climbed more than $1 to settle above $62.90/bbl on the New York market Jan. 9 while Brent’s March contract rose more than $1 to settle above $68.80/bbl in London.
“Overall, the market is focused on the oil-positive news,” said Ole Hansen, Saxo Bank head of commodity strategy. But he said crude prices could stall, saying the market will “at some point find a wall.”
The American Petroleum Institute on Jan. 9 estimated US crude supplies decreased by 11.2 million bbl for the week ended Jan. 5. The US Energy Information Administration released its own weekly inventory estimate on oil and product supplies on Jan. 10 (OGJ Online, Jan. 10, 2018).
Analysts surveyed by the Wall Street Journal expect EIA will report that crude supplies declined 2.5 million bbl on average last week.
In its monthly Short-Term Energy Outlook, released Jan. 9, EIA forecast US crude production will reach 10.3 million b/d during 2018, up from the agency’s previous estimate of 10 million b/d.
Meanwhile, the US Department of State said Jan. 9 that US President Donald Trump could decide soon, possibly by Jan. 12, whether to reinstate economic sanctions against Iran.
Previously, Trump has criticized a 2015 international agreement that lifted sanctions against Iran for its nuclear program.
Energy prices
The February light, sweet crude contract on the New York Mercantile Exchange gained $1.23 on Jan. 9 to settle at $62.96/bbl. The March contract increased by $1.15 to close at $62.87/bbl.
The NYMEX natural gas price for February rose nearly 9¢ to a rounded $2.92/MMbtu. The Henry Hub cash gas price was $2.90/MMbtu, up 3¢.
Ultralow-sulfur diesel for February gained 2¢ to a rounded $2.07/gal.
The NYMEX reformulated gasoline blendstock for February climbed 4¢ to a rounded $1.84/gal.
The Brent crude contract for March delivery on London’s ICE gained $1.04 to settle at $68.82/bbl on Jan. 9. The April contract was up $1.03 to $68.34/bbl.
The gas oil contract for January was $605.25/tonne, up $4.75. The Organization of Petroleum Exporting Countries’ basket of crudes was $66.39/bbl on Jan. 9, up 54¢.
Contact Paula Dittrick at [email protected].
