The crude oil market was taken on a “bumpy ride” down a rocky road for much of this week, according to a commodities research note from Barclays Research, “as soft fundamentals and escalating tensions in Eurasia sparked price volatility.”
“In the US,” noted analyst Michael Cohen, “high seasonal stock levels, growing production, and fall refinery maintenance could pressure domestic crude prices over the next 2 months and potentially shift [West Texas Intermediate] into contango.”
Cohen said the oil supply-demand balance “continues to look weak,” adding, “Light crude production is set to grow in the coming weeks with the restart of the Buzzard field (200,000 b/d) and Libyan production progressing towards 800,000 b/d.”
The New York Mercantile Exchange October crude oil contract dropped again on Sept. 3 after the previous day’s rebound, falling $1.09 to $94.45/bbl. The November contract declined 97¢ to settle at $93.71/bbl.
The October natural gas contract lost 2.8¢ to settle at a rounded $3.82/MMbtu. On the US cash market, gas at Henry Hub, La., was $3.89/MMbtu, down 5¢.
Heating oil for October delivery relinquished 2.95¢ to a rounded $2.84/gal. Reformulated gasoline stock for oxygenate blending for October delivery declined 2.01¢ to a rounded $2.60/gal.
The October ICE contract for Brent crude delivery dropped 94¢ to $101.83/bbl. The November contract declined $1.04 to $102.30/bbl. The ICE gas oil contract for September was up $1.25 to $863.75/tonne.
The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes on Sept. 4 was $99.13/bbl, gaining 48¢.
