Light, sweet crude oil prices gained on the New York market to settle just below $75/bbl on Oct. 9 while Brent crude prices climbed by more than $1 to settle at $85/bbl. Market participants on Oct. 10 closely monitored a hurricane in the Gulf of Mexico headed toward Florida.
Hurricane Michael strengthened to a Category 4 storm before making landfall, expected Oct. 10. The National Hurricane Center said Hurricane Michael packed maximum sustained winds of 140 mph with higher gusts. Additional strengthening is possible before landfall, NHC forecasts said.
As of Oct. 9, the hurricane caused the shutdown of about 671,000 b/d, or roughly 6% of total US oil production in the gulf, the US Bureau of Safety and Environmental Enforcement said (OGJ Online, Oct. 9, 2018).
Energy prices
The light, sweet crude contract for November delivery on the New York Mercantile Exchange was up 67¢ to $74.96/bbl on Oct. 9. The December contract was up 64¢ to settle at $74.81/bbl.
The NYMEX natural gas price for November was down a fraction of a penny to remain at a rounded $3.26/MMbtu. The Henry Hub cash gas was unavailable.
Ultralow-sulfur diesel for November was up nearly 3¢ to a rounded $2.42/gal. The NYMEX reformulated gasoline blendstock for November decreased 1.6¢ to settle at a rounded $2.08/gal.
Brent crude oil for December gained $1.09 to $85/bbl on London’s International Commodity Exchange. The January contract rose $1 to $84.54/bbl. The gas oil contract for October gained $8 on Oct. 9 to close at $743.75/tonne.
The Organization of Petroleum Exporting Countries’ basket of crudes for Oct. 9 averaged $83.17/bbl, up $1.29.
Contact Paula Dittrick at [email protected].
