MARKET WATCH: NYMEX crude for December drops by $1/bbl

Nov. 9, 2018
The price of light, sweet crude oil for December delivery dropped $1 to settle under $61/bbl on the New York market Nov. 8 while Brent crude oil for January delivery dropped more than $1 to settle under $71/bbl. During Nov. 9 trading, Brent crude oil fell below $70/bbl for the first time in 7 months while US oil future prices fell below $60/bbl during intraday trading.

The price of light, sweet crude oil for December delivery dropped $1 to settle under $61/bbl on the New York market Nov. 8 while Brent crude oil for January delivery dropped more than $1 to settle under $71/bbl.

During Nov. 9 trading, Brent crude oil fell below $70/bbl for the first time in 7 months while US oil future prices fell below $60/bbl during intraday trading.

A strengthening US dollar also pressured oil prices downward. The Wall Street Journal Dollar Index—which measures US currency against a basket of 16 others—was up 0.2%, having reversed its losses in recent weeks and extended its year-to-date climb to 5.3%.

Oil is traded in US dollars so a stronger dollar makes oil more expensive for buyers using other currencies.

Meanwhile, China’s daily crude oil imports rose to a record high in October, supported by record demand from private refiners, Reuters reported.

Chinese crude imports in October surged 32% compared with a year earlier to 40.8 million tonnes, or 9.61 million b/d, China’s General Administration of Customs showed, climbing from 9.05 million b/d in September. The previous daily record of 9.6 million b/d was set in April.

Energy prices

The December light, sweet crude contract on the New York Mercantile Exchange dropped $1 on Nov. 8 to $60.67/bbl. The January contract fell 96¢ to settle at $60.86/bbl.

The NYMEX natural gas price for December fell 1¢ to a rounded $3.54/MMbtu.

Ultralow-sulfur diesel for December fell nearly 7¢ to a rounded $2.17/gal. The NYMEX reformulated gasoline blendstock for December fell less than 1¢ to a rounded $1.64/gal.

Brent crude oil for January dropped $1.42 to $70.65/bbl on London’s International Commodity Exchange. The February contract declined $1.23 to $70.90/bbl. The gas oil contract for November decreased $11.25 on Nov. 8 to close at $681.50/tonne.

The Organization of Petroleum Exporting Countries’ basket of crudes for Nov. 8 averaged $70.68/bbl, up 5¢.

Contact Paula Dittrick at [email protected].