The Brent crude oil price for November jumped by more than $2 on the London market to settle above $81/bbl on Sept. 24, marking the highest Brent settlement since November 2014. For this year, it was the first time since May that Brent broke above $80/bbl.
US light, sweet crude for November delivery jumped by $1.30 to settle above $72/bbl, marking its highest front-month level since early July.
Analysts attributed the oil price hikes to comments made during a weekend meeting of members of the Organization of Petroleum Exporting Countries and some non-OPEC members, including Russia.
Representatives of Saudi Arabia and Russia suggested those countries want to leave production at existing production targets. Meanwhile, some worry that US sanctions against Iran and outages in Venezuela will reduce world oil supply.
Analysts say that some countries likely would have to increase production to make up for reduced oil supplies on world markets even at the existing production targets.
Energy prices
The light, sweet crude contract for November delivery on the New York Mercantile Exchange rose $1.30 to $72.08/bbl on Sept. 24. The December contract gained $1.39 to settle at $71.76/bbl.
The NYMEX natural gas price for October jumped 6¢ to a rounded $3.04/MMbtu. The Henry Hub cash gas dropped 2¢ to settle at $3.04/MMbtu.
Ultralow-sulfur diesel for October also rose by a rounded 6¢ to $2.29/gal. The NYMEX reformulated gasoline blendstock for October added nearly 4¢ to settle at a rounded $2.05/gal.
Brent crude oil for November soared $2.40 to $81.20/bbl on London’s International Commodity Exchange. The December contract rose $2.29 to $80.53/bbl. The gas oil contract for October gained $3.75 to settle at $701.75/tonne on Sept. 24.
OPEC’s basket of crudes for Sept. 24 averaged $78.81/bbl, up $1.73.
Contact Paula Dittrick at [email protected].
