Crude oil markets continued a downward slide Oct. 9.
Analysts with Barclays Research said in an oil market outlook Oct. 10 that prospects for global oil demand growth have weakened as of late. “As global oil demand growth shows signs of fatigue, crude oil suppliers are looking to Asia to absorb the surplus.”
They said, “In the short term, market shares are being maintained, and in some instances gained, through discounts. In the medium term, suppliers are forming other strategies to gain market share in Asia, including low financing cost commitments to fill [strategic petroleum reserves], refinery stake acquisitions, and long-term supply deals at attractive prices.”
The New York Mercantile Exchange November crude oil contract dropped $1.54 for the second straight day on Oct. 9, closing at $85.77/bbl. The December contract also fell $1.54 to settle at $85.05/bbl.
The natural gas contract for November dropped 1¢ to a rounded $3.85/MMbtu. The cash gas price at Henry Hub, La., closed at $3.86/MMbtu, down 2¢.
Heating oil for November delivery lost 3.93¢ to a rounded $2.54/gal. Reformulated gasoline stock for oxygenate blending for November delivery relinquished 4.35¢ to a rounded $2.28/gal.
The November ICE contract for Brent crude oil was down $1.33 to close at $90.05/bbl, while the December contract fell $1.42 to $90.37/bbl. The ICE gas oil contract for October dropped $3, settling at $766.25/tonne.
The average price for OPEC’s basket of 12 benchmark crudes was $88.27/bbl on Oct. 9, giving up 5¢.
