MARKET WATCH: Concerns about oversupply outweigh those of Middle East tension
Crude oil prices on the New York and London markets gained more than $1 on Nov. 24 following reports of a downed Russian fighter jet on the Turkey-Syria border.
But prices were falling again early on Nov. 25 ahead of the US Energy Information Administration’s weekly crude inventory report, with continued concerns about oversupply.
US commercial crude inventories, excluding those in the Strategic Petroleum Reserve, increased 1 million bbl during the week ended Nov. 20 from the previous week, EIA reported on Nov. 25. At 488.2 million bbl, inventories remain near levels not seen for this time of year in at least the last 80 years.
The American Petroleum Industry previously estimated stockpiles rose 2.6 million bbl.
Meanwhile, US retail regular-grade gasoline prices continue to decline, averaging $2.09/gal as of Nov. 23, down 73¢ compared with this time last year and the lowest heading into a Thanksgiving holiday weekend since 2008, EIA notes.
The NYMEX natural gas contract for December lost a penny to $2.20/MMbtu. The Henry Hub gas price was $2.11/MMbtu, losing 3¢.
Heating oil for December delivery gained 2.54¢ to a rounded $1.40/gal. The price for reformulated gasoline stock for oxygenates blending for December increased 7.68¢ to a rounded $1.39/gal.
The January ICE contract for Brent crude gained $1.29 to $46.12/bbl. The February contract rose $1.32 to $46.87/bbl. The ICE gas oil contract for December closed at $433.75/tonne, up $1.25.
The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes for Nov. 24 was $39.59/bbl, rising $1.24.