Both light, sweet crude oil on the New York market and Brent in London toppled by more than $2/bbl on Oct. 11 following a 2-day selloff across equity markets worldwide.
“Brent even dipped briefly below $80/bbl,” Commerzbank analysts said of late Oct. 11 trading. “Headwind came once again from further falling stock markets,” they said Oct. 12.
The US Energy Information Administration reported rising US crude inventories.
Regarding US oil supplies excluding the Strategic Petroleum Reserve, the Weekly Petroleum Status Report showed a 6 million-bbl build for the week ended Oct. 5. At 410 million bbl, US crude oil inventories are at the 5-year average for this time of year (OGJ Online, Oct. 11, 2018).
US oil production was 11.2 million b/d for the week ended Oct. 5, down 100,000 b/d from the previous week, said EIA’s Weekly Petroleum Status Report.
The Organization of Petroleum Exporting Countries said secondary sources estimate the cartel’s September production was 32.76 million b/d, up 132,000 from August.
Crude oil increased in Saudi Arabia, Libya, and Angola while production declined in Iran, Venezuela, and Algeria.
Energy prices
The light, sweet crude contract for November delivery on the New York Mercantile Exchange dropped $2.20 to $70.97/bbl on Oct. 11. The December contract dipped $2.22 to settle at $70.81/bbl.
The NYMEX natural gas price for November dropped 6¢ to a rounded $3.22/MMbtu.
Ultralow-sulfur diesel for November was fell 6¢ to a rounded $2.33/gal. The NYMEX reformulated gasoline blendstock for November decreased nearly 9¢ to settle at a rounded $1.93/gal.
Brent crude oil for December decreased $2.83 to $80.26/bbl on London’s International Commodity Exchange. The January contract fell $2.78 to $79.87/bbl. The gas oil contract for November fell $17.75 on Oct. 11 to close at $721.50/tonne.
OPEC’s basket of crudes for Oct. 11 averaged $80.14/bbl, down $2.46.
Contact Paula Dittrick at [email protected].
