Oil prices on the New York market dropped in Dec. 15 trading following reports of supply disruptions in Libya and awaiting reports of economic statistics on Dec. 16 from China. The US Federal Reserve also met starting Dec. 16, and a monetary policy statement was scheduled to be released Dec. 17.
US light, sweet crude oil prices on the New York market and Brent crude oil prices on the London market have both tumbled in recent days to values not experienced since 2009.
Analyst Oswald Clint at Bernstein Research said he expected 2015 world oil markets will become more balanced with growing demand and oil supply likely to be cut.
“We expect prices to recover in 2015, rather than remain at current low levels,” Clint said in a report.
UAE’s Oil Minister Suhail Bin Mohammed al-Mazroui said Dec. 15 that there was no need for an emergency meeting of the Organization of Petroleum Exporting Countries.
“OPEC is not a swing producer, it’s not fair that we correct the market for everyone else,” he told reporters in Doha, Reuters reported.
Meanwhile, armed clashes during the weekend in Libya prompted National Oil Corp., the state-run oil company, to declare force majeure for its two biggest oil ports, Es Sider and Ras Lanuf, disrupting oil supply.
China, one of the world’s largest oil consumers, reported its manufacturing sector slowing. HSBC’s flash Purchasing Managers Index for December dropped to 49.5. Anything lower than 50 indicates a contraction.
Energy prices
The New York Mercantile Exchange January crude oil contract fell $1.90 on Dec. 15, closing at $55.91/bbl. The February contract dropped $1.82 to $56.26/bbl.
The natural gas contract for January settled down 7.6¢ to a rounded $3.72/MMbtu. The cash gas price at Henry Hub, La., gained 8¢ to $3.66/MMbtu on Dec. 15.
Heating oil for January delivery dropped 1.4¢ to a rounded $2/gal. Reformulated gasoline stock for oxygenate blending for January was down by 2¢ to a rounded $1.58/gal.
The January 2015 ICE contract for Brent crude oil fell 79¢ to $61.06/bbl. The February contract dropped 94¢ to $61.21/bbl. The ICE gas oil contract for December declined by $10.25 to $555.75/tonne.
The average price for OPEC’s basket of 12 benchmark crudes on Dec. 16 was $57.92/bbl, down 73¢.
Contact Paula Dittrick at [email protected].
*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.
