Rising US oil inventories caused light, sweet crude prices to drop modestly on the New York market, settling below $62/bbl on Nov. 7. Brent crude oil prices in London fell slightly to hold above $72/bbl on Nov. 7.
US crude inventories, excluding the Strategic Petroleum Reserve, rose 5.8 million bbl for the week ended Nov. 2 compared with the previous week, the US Energy Information Administration said in its weekly estimate on Nov. 7.
The latest oil supply total was 431.8 million bbl, putting US crude oil inventories about 3% above the 5-year average for this time of year.
EIA’s Weekly Petroleum Status Report showed US oil production at 11.6 million b/d for the week ended Nov. 2, which was up 400,000 b/d from the previous week. All the increased production came from the Lower 48 where production was 11.1 million b/d for the week ended Nov. 2.
The Organization of Petroleum Exporting Countries and some non-OPEC producers are scheduled to discuss production levels during a Nov. 11 meeting in Abu Dhabi.
In late June, OPEC and 10 non-OPEC producers, led by Russia, agreed to gradually increase crude production. They agreed to comply 100% with production-cut targets but will no longer hold back output any more than 100% as some of the producers had done in the past.
Energy prices
The December light, sweet crude contract on the New York Mercantile Exchange dropped 54¢ on Nov. 7 to $61.67/bbl. The January contract fell 52¢ to settle at $61.82/bbl.
The NYMEX natural gas price for December held unchanged at a rounded $3.56/MMbtu.
Ultralow-sulfur diesel for December rose nearly 5¢ to a rounded $2.24/gal. The NYMEX reformulated gasoline blendstock for December fell about 4¢ to a rounded $1.65/gal.
Brent crude oil for January dropped 6¢ to $72.07/bbl on London’s International Commodity Exchange. The February contract declined 3¢ to $72.13/bbl. The gas oil contract for November increased $15.25 on Nov. 7 to close at $692.75/tonne.
OPEC’s basket of crudes for Nov. 7 averaged $70.63/bbl, down 25¢.
Contact Paula Dittrick at [email protected].
