MARKET WATCH: NYMEX crude oil climbs above $51/bbl
Crude oil prices gained modestly for a third consecutive day on the New York market Oct. 11 with the November contract settling at $51.30/bbl. But prices fell again in early trading on Oct. 12.
Prices gained support earlier in the week after Saudi Arabia announced plans to reduce monthly crude oil exports in November.
The Saudi decision stems with efforts led by the Organization of Petroleum Exporting Countries with other producers, including Russia, to curb oversupply and stabilize prices by cutting output in an agreement due to expire in March 2018.
OPEC on Oct. 11 said production by members rose by 88,000 b/d in September compared with August despite production-cut targets by OPEC members and some other major producers.
The statistics in OPEC’s latest Monthly Oil Market Report showed September production was 32.75 million b/d, which was about 100,000 b/d higher than the average in 2016 (OGJ Online, Oct. 11, 2017).
The US Energy Information Administration reported crude oil inventories, excluding the Strategic Petroleum Reserve, decreased by 2.8 million bbl for the week ended Oct. 6 from the previous week. The latest total was 462.2 million bbl, putting crude oil inventories near the upper limit of the average range for this time of year.
Energy prices
The November light, sweet crude contract on the New York Mercantile Exchange gained 38¢ to $51.30/bbl on Oct. 11. The December contract was up 37¢ to $51.60/bbl.
The NYMEX natural gas price for November rose a fraction of a cent to remain at a rounded $2.89/MMbtu. The Henry Hub cash gas price was $2.93/MMbtu, up 3¢.
Heating oil for November increased 2¢ to $1.78/gal. The NYMEX reformulated gasoline blendstock for November rose nearly 2¢ to a rounded $1.61/gal.
The Brent crude contract for December on London’s ICE added 33¢ to $56.94/bbl. The January contract was up 37¢ to $56.73/bbl. The gas oil contract for October dropped $5.75 to $524/tonne.
OPEC’s basket of crudes for Oct. 11 was $54.54/bbl, up 31¢.
Contact Paula Dittrick at [email protected].
About the Author
Paula Dittrick
Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.