MARKET WATCH: NYMEX oil holds above $52/bbl

Crude oil prices fell on the New York market Oct. 25 but still settled above $52/bbl after a weekly government report showed gains in US oil supplies and production.

Meanwhile, Brent crude oil prices gained slightly in London to settle above $58/bbl.

US commercial oil stockpiles increased nearly 900,000 bbl for the week ended Oct. 20 compared with the previous week’s total, the Energy Information Administration reported.

The Weekly Petroleum Status Report showed 457.3 million bbl of crude oil in storage, excluding the Strategic Petroleum Reserve.

The market “looks a lot more bullish than it did 3 or 4 months ago,” said James Williams, president of WTRG Economics in London, Ark.

EIA said US oil production for the week ended Oct. 20 was 9.5 million b/d, up 1.1 million b/d from the previous week.

Production across the Lower 48 was 9 million b/d, which stemmed from the resumption of production following tropical storms and hurricanes in the Gulf of Mexico.

Alaska’s production for the week ended Oct. 20 was 504,000 b/d, down 8,000 b/d.

Energy prices

The December light, sweet crude contract on the New York Mercantile Exchange declined 29¢ to $52.18/bbl on Oct. 25. The January 2018 contract fell 24¢ to $52.43/bbl.

The NYMEX natural gas price for November dropped 5¢ to a rounded $2.92/MMbtu. The Henry Hub cash gas price increased 1¢ to $2.93/MMbtu.

Heating oil for November increased less than a penny to remain at a rounded $1.82/gal. The NYMEX reformulated gasoline blendstock for November rose nearly 2¢ to a rounded $1.73/gal.

The Brent crude contract for December on London’s ICE gained 11¢ to $58.44/bbl. The Brent January contract was up 6¢ to $58.23/bbl. The gas oil contract for November gained $7.50 to $533.50/tonne.

The Organization of Petroleum Exporting Countries’ basket of crudes for Oct. 25 was not immediately available.

Contact Paula Dittrick at paulad@ogjonline.com.