Light, sweet crude oil prices rose Sept. 14 and the momentum continued in early Sept. 17 trading, which Saxo Bank Analyst Ole Hansen attributed to a weakening US dollar.
“The dollar is a bit on the weak side,” Hansen said Sept. 17. Because oil is traded on most worldwide markets in US dollars, a weakening dollar makes it less expensive for buyers starting with other currencies.
The Wall Street Journal Dollar Index, which measures the US dollar against a basket of 16 other currencies, was trading down 0.1% early Sept. 17.
Separately, the US drilling rig count rose modestly. Baker Hughes reported the rig count gained 7 rigs to 1,055 units working for the week ended Sept. 14 compared with the previous week. This was up 119 units from the same period a year ago (OGJ Online, Sept. 14, 2017).
Meanwhile, Hurricane Isaac was downgraded to a remnant low pressure system in the Caribbean Sea near Jamaica. National Hurricane Center forecasters on Sept. 17 estimated a 10% chance of the low-pressure system developing into a tropical depression or storm within 5 days.
Energy prices
The light, sweet crude contract for October delivery on the New York Mercantile Exchange rose 40¢ to $68.99/bbl on Sept. 14. The November contract increased 36¢ to settle at $68.77/bbl.
The NYMEX natural gas price for October fell 50¢ to a rounded $2.77/MMbtu. The Henry Hub cash gas was $2.85/MMbtu, down 8¢.
Ultralow-sulfur diesel for October declined 1.4¢ to a rounded $2.21/gal. The NYMEX reformulated gasoline blendstock for October fell 2¢ to a rounded $1.97/gal.
Brent crude oil for November declined 9¢ to $78.09/bbl on London’s International Commodity Exchange. The December contract declined 14¢ to $77.61/bbl. The gas oil contract for October was $680/tonne, down $3.50.
The Organization of Petroleum Exporting Countries’ basket of crudes for Sept. 14 averaged $76.05/bbl, down 41¢.
Contact Paula Dittrick at [email protected].
