Benchmark crude oil prices rose on New York and London markets by more than $1/bbl Feb. 15 to 3-month-high settlements following the Organization of Petroleum Exporting Countries report that cartel production dropped in January from December 2018.
OPEC reported its January production at 30.81 million b/d. Saudi Arabia Oil Minister Khalid al-Falih told the Financial Times on Feb. 12 that Saudi production would fall below 10 million b/d in March—more than 500,000 b/d below its production-cut agreement (OGJ Online, Feb. 13, 2019).
“The main driver of the upward momentum in oil prices finds its roots in the aggressive output cuts announced by the Saudi oil minister,” said Harry Tchilinguirian of BNP Parisbas SA in London.
Separately, Saudi Aramco curtailed oil supply from Safaniyah field to repair a damaged power cable. Safaniyah field has capacity to produce 1.2-1.5 million b/d. Bloomberg reported a cable was damaged about 2 weeks ago, and repairs are expected to be done by early March.
The New York Mercantile Exchange is closed Feb. 18 for Presidents’ Day.
Energy prices
The March contract for light, sweet crude oil on the New York Mercantile Exchange jumped $1.18 to settle at $55.59/bbl on Feb. 15. The contract for April delivery climbed $1.19 to settle at $55.98/bbl.
NYMEX natural gas for March increased 5¢ to $2.62/MMbtu on Feb. 15.
Ultralow-sulfur diesel for March gained nearly 5¢ to a rounded $2.02/gal. The NYMEX reformulated gasoline blendstock for March increased 6¢ to a rounded $1.57/gal.
Brent crude for April delivery gained $1.68 to settle at $66.25/bbl while the May contract climbed $1.70 to settle at $66.22/bbl. The gas oil contract for March gained $18.25 to $615.50/tonne on Feb. 15.
The average price for OPEC’s basket of crudes was $64.87/bbl on Feb. 15, up 59¢.
Contact Paula Dittrick at [email protected].
