Light, sweet crude oil for November and December deliveries gained more than $1 to settle above $52/bbl on the New York market Sept. 25. Brent contracts for November and December gained more than $2 in London with the November contract closing above $59/bbl.
Brent’s closing was its highest settlement since July 2015. US crude futures settled more than 20% above the low for the year so far of $42.53/bbl on June 21.
Ole Hansen, Saxo Bank head of commodity strategy, said a stronger US dollar on Sept. 26 also could encourage investors to take profits on the back of recent higher oil prices.
“It’s been a hell of a run, and [Brent] is now approaching the psychologically important mark of $60/bbl,” Hansen added.
Crude prices also were supported Sept. 25 by Turkey’s stern response to the Kurdish autonomous region’s independence referendum.
Turkish President Recep Tayyip Erdogan threatened to close an oil pipeline carrying 500,000-600,000 b/d from northern Iraq to the Turkish port of Ceyhan.
“The potential impact from any disruption is fairly significant, with the pipeline having the capacity to ship 700,000 b/d,” ING Group analysts told the Wall Street Journal.
Traders cited the pipeline threat as a potential supply concern coupled with the existing 1.8 million b/d of production-cut targets by the Organization of Petroleum Exporting Countries and non-OPEC producers.
The Iraqi government said it will not hold talks with the Kurdistan regional government. The referendum results, to be announced later this week, is expected to favor independence.
Energy prices
The November light, sweet crude contract on the New York Mercantile Exchange climbed $1.56 to settle at $52.22/bbl on Sept. 25. The December contract gained $1.49 to settle at $52.52/bbl.
The NYMEX natural gas price for October dropped 4¢ to a rounded $2.92/MMbtu. The Henry Hub cash gas price rose 2¢ to $2.97/MMbtu.
Heating oil for October edged up rose 4¢ to a rounded $1.86/gal. The NYMEX reformulated gasoline blendstock for October gained 5¢ to a rounded $1.72/gal on Sept. 25.
The Brent crude contract for November on London’s ICE jumped $2.16 to $59.02/bbl. The December contract climbed $2.01 to $58.43/bbl. The gas oil contract for October was $551.50/tonne, up $10.
OPEC’s basket of crudes for Sept. 25 was $55.62/bbl, up 78¢.
Contact Paula Dittrick at [email protected].
