MARKET WATCH: NYMEX crude oil climbs toward $51/bbl

Crude oil prices gained more than $1/bbl on the New York market Oct. 10 with the November contract settling just under $51/bbl after Saudi Arabia announced plans to reduce its November crude oil exports.

Crude oil prices gained more than $1/bbl on the New York market Oct. 10 with the November contract settling just under $51/bbl after Saudi Arabia announced plans to reduce its November crude oil exports.

In London, Brent crude oil rose more than 80¢ to settle above $45/bbl. Saudi Arabia’s Oil Ministry said the kingdom will export 7% less crude by sea during November compared with the November 2016.

Meanwhile, the Organization of Petroleum Exporting Countries and other producers, including Russia, are working to stabilize prices through production-cut targets that expire in March 2018.

The US government planned Oct. 12 to release weekly oil and product inventory statistics—a day later than usual because of the federal Columbus Day holiday. Analysts expected a continued draw in crude supplies. Analysts surveyed by S&P Global Platts expect oil supplies will fall 400,000 bbl for the week ended Oct. 6.

Hurricane Nate caused less damage than earlier, more severe storms such as Harvey and Irma. But Nate’s path through the Gulf of Mexico disrupted oil production as platforms and rigs were evacuated.

The US Bureau of Safety and Environmental Enforcement reported that 85% of oil production in the Gulf of Mexico was shut in as of Oct. 9, amounting to nearly 1.5 million b/d.

Energy prices

The November light, sweet crude contract on the New York Mercantile Exchange gained $1.34 to $50.92/bbl on Oct. 10. The December contract climbed by $1.30 to $51.23/bbl.

The NYMEX natural gas price for November rose nearly 6¢ to a rounded $2.89/MMbtu. The Henry Hub cash gas price was $2.90/MMbtu, up 4¢.

Heating oil for November increased nearly 3¢ to $1.76/gal. The NYMEX reformulated gasoline blendstock for November also rose 3¢ to remain at a rounded $1.59/gal.

The Brent crude contract for December on London’s ICE added 82¢ to $56.61/bbl. The January contract was up 82¢ to $56.36/bbl. The gas oil contract for October climbed $13.75 to $530.75/tonne.

OPEC’s basket of crudes for Oct. 10 was $54.23/bbl, up 53¢.

Contact Paula Dittrick at paulad@ogjonline.com.

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