MARKET WATCH: Brent crude reaches above $60/bbl

Oct. 30, 2017
Benchmark crude oil prices on US and London markets rose on Oct. 27 with Brent crude oil rising above $60/bbl for the first time in more than 2 years.

Benchmark crude oil prices on US and London markets rose on Oct. 27 with Brent crude oil rising above $60/bbl for the first time in more than 2 years.

The Brent contract for December delivery rose $1.14/bbl to settle at $60.44/bbl—its highest settlement since July 2015. The US light, sweet crude contract for December rose $1.26/bbl to $53.90/bbl—its highest settlement since February.

The two oil futures benchmarks have posted weekly price gains for 3 consecutive weeks.

“It’s probably as close to as good as it gets,” said Ole Hansen, head of commodity strategy at Denmark’s Saxo Bank. “Overall, there is a renewed and quite strong investor appetite for oil.”

Most analysts agreed oil prices rose on recent optimism that the Organization of Petroleum Exporting Countries and other major producers likely will extend production-cut targets to help rebalance oil supply-demand levels on world markets.

The existing targets are effective through March 2018. OPEC has a Nov. 30 meeting scheduled in Vienna.

Energy prices

The January 2018 light, sweet crude contract on the New York Mercantile Exchange increased $1.23 to $54.09/bbl on Oct. 27.

The NYMEX natural gas price for November dropped nearly 14¢ to $2.75/MMbtu. The Henry Hub cash gas price decreased 11¢ to $2.78/MMbtu.

Heating oil for November increased 2.5¢ to a rounded $1.87/gal, marking its highest settlement since June 30, 2015.

The NYMEX reformulated gasoline blendstock for November rose nearly 2¢ to a rounded $1.77/gal.

The Brent crude contract for January 2018 on London’s ICE gained $1.09 to $60.13/bbl. The gas oil contract for November gained $12.50 to $548.75/tonne.

OPEC’s basket of crudes for Oct. 27 was $57.54/bbl, up $1.09.

Contact Paula Dittrick at [email protected].