Light, sweet crude oil prices settled over $1/bbl higher on the New York market Oct. 23 after a government report showed US crude oil supplies for the week ended Oct. 18 declined for the first time in 6 weeks.
The US Energy Information Administration said crude inventories fell by 1.7 million bbl, countering expectations of a build by analysts and traders surveyed ahead of the report. The latest estimated crude inventory was 433.2 million bbl (OGJ Online, Oct. 23, 2019).
“[A] solid draw in both crude and products is propelling prices higher [Oct. 23]. Sentiment has been bearish bearish bearish for a long time now all from the macro side of the equation (Brexit, trade war, etc.) while the physical market has been tight. But the physical market is tight and [Oct. 23] data on that came to the surface again and took charge of the price action,” Bjarne Schieldrop, chief analyst, commodities at SEB Merchant Banking told OGJ.
Energy prices
The light, sweet crude contract for December on the New York Mercantile Exchange rose $1.49 to $55.97/bbl on Oct. 23. The January contract increased $1.49 to settle at $55.99/bbl.
The NYMEX natural gas price for November rose 1¢ to $2.28/MMbtu. The December contract gained 2¢ to a rounded $2.43/MMbtu.
Ultralow-sulfur diesel for November gained 2¢ to $1.96/gal. The NYMEX reformulated gasoline blendstock for November rose 4¢ to a $1.65/gal.
Brent crude oil for December increased $1.47 to $61.17/bbl on London’s International Commodity Exchange. The January contract rose $1.43 to $60.87/bbl. The gas oil contract for November was $590.75/tonne on Oct. 23, down $2.25.
The Organization of Petroleum Exporting Countries’ basket of crudes for Oct. 23 was $60.42/bbl, up 64¢.
Mikaila Adams | Managing Editor - News
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.
