Paula Dittrick
OGJ Senior Staff Writer
HOUSTON, Nov. 12 -- Oil prices held fairly steady in trading on the New York market on Nov. 11 after previously reaching a 2-year high earlier in the week upon reports that US crude and gasoline stockpiles had declined the previous week, which traders and analysts took as a sign of improving fuel demand.
“With the gradual acceptance that a very strong and broad-based recovery has ensued in the oil market, sentiment has become less fragile, helping prices to cement itself in the $85-90[/bbl] range,” Barclays Capital said in a Nov. 12 research note.
Barclays analyst Amrita Sen said monthly reports from the International Energy Agency and the Organization of Petroleum Exporting Countries provided “solid indications of oil demand.”
In its November report, OPEC raised its global consumption numbers. It projected world oil-demand growth in 2010 at 1.3 million b/d, an increase of 190,000 b/d, and 2011 world oil-demand growth at 1.2 million b/d, up by 120,000 b/d.
OPEC said it revised its forecast based upon indications of escalating economic growth within industrialized countries.
The cartel also sees the world economy rebounding faster than it had anticipated. OPEC forecast the world economy will expand 4.1% in 2010 compared with a 3.9% forecast that it previously made in its annual outlook. Yet, OPEC maintained its global economic-growth forecast for 2011 at 3.6%.
The IEA Oil Market Report on Nov. 12 said oil markets turned markedly stronger in October. IEA revised its global oil demand growth forecast for 2010 up by 200,000 b/d to 2.3 million b/d.
Energy prices
The December contract for benchmark US light, sweet crudes settled at $87.81/bbl Nov. 11, which was the same closing price as the previous day, on the New York Mercantile Exchange. The January contract lost 1¢ to $88.28/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., settled at $87.81/bbl, which was the same as the previous day.
Heating oil for December delivery slipped 1.53¢ to $2.427/gal on NYMEX. Reformulated blend stock for oxygenate blending for the same month fell by less than 1¢ to $2.236/gal.
The December natural gas contract fell 11.9¢ to $3.927/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., dropped 23¢ to $3.75/MMbtu.
In London, the December IPE contract for North Sea Brent crude was down 15¢ to $88.81/bbl. Gas oil for November head steady from the previous day at $753.25/tonne.
The average price for the Organization of Petroleum Exporting Countries' basket of 12 reference crudes increased 56¢ to $85.81/bbl.
Contact Paula Dittrick at [email protected].
Rystad Energy.
