MARKET WATCH: NYMEX crude price drops on gain in US product inventory

Sept. 7, 2018
The light, sweet crude oil contract for October fell by nearly $1 to settle under $68/bbl on the New York market Sept. 6 after a weekly government inventory report showed a gain in US product supplies, which outweighed the market’s response to a drop in US oil supplies.

The light, sweet crude oil contract for October fell by nearly $1 to settle under $68/bbl on the New York market Sept. 6 after a weekly government inventory report showed a gain in US product supplies, which outweighed the market’s response to a drop in US oil supplies.

US crude oil inventories, excluding the Strategic Petroleum Reserve, decreased by 4.3 million bbl to an estimated 401.5 million bbl total for the week ended Aug. 31, said the US Energy Information Administration (OGJ Online, Sept. 6, 2018).

Reuters reported the 401.5 million bbl crude total was the lowest US oil supply level since February 2015.

Meanwhile, EIA reported gasoline and distillate supplies combined rose by 5 million bbl for the week ended Aug. 31.

“The stock build in refined products appears to have been a bigger driver in price,” than the crude inventory decline, Warren Patterson, ING Bank commodities strategist, told the Wall Street Journal. “In fact, US gasoline inventories stand at least at a 5-year high.”

EIA released the Weekly Petroleum Status Report on Sept. 6, a day later than normal because of the Sept. 3 US Labor Day holiday. US oil production for the week ended Aug. 31 held steady at 11 million b/d, the report said.

Energy prices

The light, sweet crude contract for October delivery on the New York Mercantile Exchange dropped 95¢ to $67.77/bbl on Sept. 6. The November contract decreased 90¢ to settle at $67.52/bbl.

The NYMEX natural gas price for October fell 2¢ to $2.77/MMbtu. The Henry Hub cash gas was $2.87/MMbtu, down 7¢.

Ultralow-sulfur diesel for October dropped 2¢ to a rounded $2.21/gal. The NYMEX reformulated gasoline blendstock for October fell 1¢ to a rounded $1.95/gal.

Brent crude oil for November decreased 77¢ to $76.50/bbl on London’s International Commodity Exchange. The December contract dropped 75¢ to $76.15/bbl. The gas oil contract for September was $687.75/tonne on Sept. 6, down $9.25.

The Organization of Petroleum Exporting Countries’ basket of crudes for Sept. 6 was $74.51/bbl, down 67¢.

Contact Paula Dittrick at [email protected].