Crude oil prices dropped slightly on New York and London markets Jan. 17 on rising US crude production, less-than-robust global demand, and the continuing trade dispute between the US and China.
The Petroleum Status Report issued by the US Energy Information Administration Jan. 16 showed US crude production rose to a record 11.9 million b/d. In a separate report earlier this week, EIA said US production in 2019 is expected to reach a record of more than 12 million b/d.
That supply growth could outpace demand despite production cuts by OPEC and allied exporters, weighing on the market. However, the growing US production was anticipated by investors and priced into the market, resulting in only a slight price decrease, said Thomas Saal, senior vice-president of INTL Hencorp Futures, as reported by Reuters.
Moving into Friday, trade talks between China and the US appear to be progressing. Bloomberg News, citing officials familiar with the discussions, reported Jan. 18 that China has offered increase buys of US goods on a path to narrow a trade imbalance.
Energy prices
The February light, sweet crude contract on the New York Mercantile Exchange dropped 24¢ to settle at $52.07/bbl on Jan. 17 while the contract for March delivery fell 25¢ to settle at $52.36/bbl.
NYMEX natural gas for February gained a rounded 3¢ to close at $3.41/MMbtu on Jan. 17.
Ultralow-sulfur diesel for February was down 1¢ to $1.88/gal. The NYMEX reformulated gasoline blendstock for February nudged up just over 1¢ to reach $1.43/gal.
Brent crude for March dropped 14¢ to $61.18/bbl on London’s Intercontinental Exchange while the April contract fell 18¢ to settle at $61.16/bbl. The gas oil contract for February dropped $5 to $563.25/tonne on Jan. 17.
The average price for the Organization of Petroleum Exporting Countries’ basket of crudes was $59.63/bbl on Jan. 17, up 11¢.
