MARKET WATCH: Brent crude approaches $61/bbl

Brent crude oil price for December delivery moved toward $61/bbl on Oct. 30 while the US light, sweet December crude price settled above $54/bbl in New York.

Brent crude oil price for December delivery moved toward $61/bbl on Oct. 30 while the US light, sweet December crude price settled above $54/bbl in New York.

Analysts said market participants are optimistic about suggestions that the Organization of Petroleum Exporting Countries will extend its production-cut targets beyond March 2018.

Last week, OPEC’s Sec. Gen. Mohammad Barkindo said both Saudi Arabian Crown Prince Mohammed bin Salman and Russian President Vladimir Putin appear to favor a 9-month extension of current targets.

Existing targets call for cuts by OPEC and some other major production by 1.8 million b/d total.

OPEC meets in Vienna on Nov. 30. Analysts noted some concerns about rising Iraqi exports and US production, which could slow the supply-demand rebalancing.

Energy prices

The December light, sweet crude contract on the New York Mercantile Exchange increased 25¢ to $54.15/bbl on Oct. 30. The January 2018 contract gained 28¢ to $54.37/bbl.

The NYMEX natural gas price for December edged up less than a penny to remain at $2.96/MMbtu. The Henry Hub cash gas price increased 9¢ to $2.87/MMbtu.

Heating oil for November increased 1¢ to a rounded $1.88/gal.

The NYMEX reformulated gasoline blendstock for November declined less than 1¢ to a rounded $1.76/gal.

The Brent crude contract for December on London’s ICE gained 46¢ to $60.90/bbl. The January 2018 contract gained 46¢ to $60.59/bbl.

The gas oil contract for November declined $1.25 to $547.50/tonne.

OPEC’s basket of crudes for Oct. 31 was $58.27/bbl, up 72¢.

Contact Paula Dittrick at paulad@ogjonline.com.

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