The light, sweet crude oil contract for October fell slightly on the New York market Sept. 7, marking its third consecutive decline. Brent crude oil prices for November and December climbed modestly in London.
Analysts said a strengthening US dollar restrained light, sweet crude prices. Oil trades in US dollars so a stronger dollar makes oil expensive for buyers starting out with other currencies.
The Wall Street Journal Dollar Index, which tracks the dollar against a basket of 16 other currencies, rose 0.3%, on Sept. 7. The dollar rose after the US Department of Labor reported the unemployment rate held steady in August at 3.9%, while employers added 201,000 jobs.
Analysts said concerns about future world oil supply because of pending US sanctions on Iranian oil exports combined with US-China trade tensions tended to hold down US oil future prices.
Separately, Baker Hughes data showed the US drilling rig count remained unchanged at 1,048 units working for the week ended Sept. 7. The count was up 104 units from the same time a year ago (OGJ Online, Sept. 7, 2018).
Barclays Energy recently hosted an energy conference for chief executive officers in New York at which about 200 companies were represented. Financial discipline was a key topic among oil and gas producers.
“Natural gas prices are unlikely to stray too far from $3/MMbtu in the medium term,” Barclays said in a special report recapping conference highlights. “A number of companies commented that, though they see tightness this winter due to decade-low inventories, gas prices will likely be capped near $3/MMbtu in the medium term.”
Barclays analysts agreed with this outlook on US gas future prices.
Energy prices
The light, sweet crude contract for October delivery on the New York Mercantile Exchange edged down 2¢ to $67.75/bbl on Sept. 7. The November contract increased 3¢ to settle at $67.55/bbl.
The NYMEX natural gas price for October edged up less than 1¢ to remain at $2.77/MMbtu. The Henry Hub cash gas was $2.84/MMbtu, down 3¢.
Ultralow-sulfur diesel for October rose nearly a penny to a rounded $2.22/gal. The NYMEX reformulated gasoline blendstock for October climbed nearly 2¢ to a rounded $1.97/gal.
Brent crude oil for November increased 33¢ to $76.83/bbl on London’s International Commodity Exchange. The December contract gained 32¢ to $76.47/bbl. The gas oil contract for September was $675.50/tonne on Sept. 7, down $3.
The Organization of Petroleum Exporting Countries’ basket of crudes for Sept. 7 averaged $74.17/bbl, down 34¢.
Contact Paula Dittrick at [email protected].
