MARKET WATCH: NYMEX, Brent oil prices drop on higher OPEC production
Light, sweet crude oil prices for September delivery dropped moderately on the New York market Aug. 13 while the Brent contract for October also fell in London after the Organization of Petroleum Exporting Countries said the cartel’s production rose in July.
OPEC said secondary sources indicated its production rose 41,700 b/d to average 32.32 million b/d in July although Saudi Arabia’s production fell during that month (OGJ Online, Aug. 13, 2018).
Meanwhile, analysts said prices continue to be influenced by uncertainty about pending US sanctions on Iranian oil exports.
“Since mid-July, the front month Brent crude oil contract has been caught in a $72-75/bbl range in a tug of war between short-term bearish weaknesses and medium-term bullish Iran sanctions kicking in on Nov. 4,” Bjarne Schieldrop, SEB Markets chief commodities analyst, told the Wall Street Journal.
On Aug. 14, the American Petroleum Institute was scheduled to release its US crude oil supply estimate for the week ended Aug. 10. The US Energy Information Administration was scheduled to release its weekly inventory estimate on Aug. 15.
Energy prices
The light, sweet crude contract for September delivery on the New York Mercantile Exchange fell 43¢ to close at $67.20/bbl on Aug. 13. The October contract decreased 37¢ to settle at $66.57/bbl.
The NYMEX natural gas price for September fell 1¢ to a rounded $2.93/MMbtu. The Henry Hub cash gas price held unchanged at $2.92/MMbtu.
Ultralow-sulfur diesel for September edged down less than 1¢ to remain at a rounded $2.14/gal. The NYMEX reformulated gasoline blendstock for September fell slightly more than 2¢ to a rounded $2.01/gal.
Brent crude oil for October decreased 20¢ to $72.61/bbl on London’s International Commodity Exchange. The November contract fell 19¢ to settle at $72.92/bbl. The gas oil contract for August was $655/tonne on Aug. 13, down $1.50.
OPEC’s basket of crudes averaged $70.97/bbl on Aug. 13, up 37¢.
Contact Paula Dittrick at [email protected].
About the Author
Paula Dittrick
Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.