MARKET WATCH: NYMEX crude prices drop on inventory gain

Light, sweet crude oil futures dropped modestly on the New York market Nov. 15 after the US government reported a gain in crude oil inventories along with rising production. Total US crude oil production for the week ended Nov. 10 was 9.645 million b/d, up 25,000 b/d of which the Lower 48 accounted for 20,000 b/d and Alaska accounted for the rest.

Light, sweet crude oil futures dropped modestly on the New York market Nov. 15 after the US government reported a gain in crude oil inventories along with rising production.

Total US crude oil production for the week ended Nov. 10 was 9.645 million b/d, up 25,000 b/d of which the Lower 48 accounted for 20,000 b/d and Alaska accounted for the rest.

The Weekly Petroleum Status Report showed US commercial crude oil inventories, excluding the Strategic Petroleum Reserve, increased 1.9 million bbl to 459 million bbl for the week ended Nov. 10.

US crude oil inventories are in the upper half of the average range for this time of year, the US Energy Information Administration said.

Total motor gasoline inventories increased 900,000 million bbl, putting gasoline supplies in the middle of the average range for this time of year. Finished gasoline inventories decreased while blending components inventories increased last week.

Distillate fuel inventories decreased 800,000 bbl. Propane-propylene inventories decreased 2.5 million bbl.

US refineries operated at 91% of capacity. Gasoline production decreased, averaging about 9.9 million b/d. Distillate fuel production increased, averaging more than 5.2 million b/d.

The EIA reported US crude imports averaged 7.9 million b/d, up 521,000 b/d from the previous week.

Energy prices

The December light, sweet crude contract on the New York Mercantile Exchange dropped 37¢ on Nov. 15 to $55.33/bbl. The January 2018 contract also declined 37¢ to $55.52/bbl.

The NYMEX natural gas price for December fell 2¢ to a rounded $3.08/MMbtu. The Henry Hub cash gas price was $3.11/MMbtu, up 3¢.

Heating oil for December edged up less than 1¢ to remain at a rounded $1.91/gal. The NYMEX reformulated gasoline blendstock for December dropped a rounded 2¢ to $1.74/gal.

The Brent crude contract for January 2018 on London’s ICE decreased 34¢ to $61.87/bbl. The February 2018 contract fell 30¢ to $61.76/bbl. The gas oil contract for December was up $5.50 to $556/tonne.

The Organization of Petroleum Exporting Countries’ basket of crudes on Nov. 15 was $59.79/bbl, down 73¢.

Contact Paula Dittrick at paulad@ogjonline.com.

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