The light, sweet crude oil contract for October fell by more than $1/bbl on the New York market Sept. 5, which analysts attributed to Tropical Storm Gordon’s path through the Gulf of Mexico having little ill effect on the US oil and gas industry.
Gordon never gained enough strength to become a hurricane although oil prices rose pending its landfall. On Sept. 4, Brent crude oil prices in London neared $80/bbl. Light, sweet crude oil prices in New York briefly reached about $71/bbl. Both benchmarks fell by each market’s closing that day.
Some early weather forecasts had Gordon coming onshore in Louisiana where it could have affected refineries and offshore production. But the tropical storm made landfall near the Alabama-Mississippi border.
The US Bureau of Safety and Environmental Enforcement reported Sept. 5 that 9% of offshore oil production was shut-in for 2 days in anticipation of Gordon. Anadarko Corp. said it evacuated workers from two offshore oil platforms.
Separately, US President Donald Trump will chair a Sept. 26 United Nations Security Council discussion about Iran to outline what Trump calls Iran’s violations of international law. The Security Council discussion will come the day that Trump attends the UN General Assembly.
In May, Trump announced a US exit from an agreement between Iran and other countries in which Iran promised to limit its nuclear program in return for the lifting of sanctions against it. Trump announced new unilateral sanctions. Oil sanctions are to take effect in early November. Trump is urging other countries to also stop buying Iranian oil.
Energy prices
The light, sweet crude contract for October delivery on the New York Mercantile Exchange dropped $1.15 to $68.72/bbl on Sept. 5. The November contract decreased $1.14 to settle at $68.42/bbl.
The NYMEX natural gas price for October fell nearly 3¢ to $2.79/MMbtu. The Henry Hub cash gas was $2.94/MMbtu, down 2¢.
Ultralow-sulfur diesel for October dropped 2¢ to $2.23/gal. The NYMEX reformulated gasoline blendstock for October fell nearly 3¢ to a rounded $1.96/gal.
Brent crude oil for November decreased 90¢ to $77.27/bbl on London’s International Commodity Exchange. The December contract dropped $1 to $76.90/bbl. The gas oil contract for September was $687.75/tonne on Sept. 5, down $9.25.
The Organization of Petroleum Exporting Countries’ basket of crudes for Sept. 5 was $75.18/bbl, down $1.14.
Contact Paula Dittrick at [email protected].
