Crude oil prices retreated on both the New York and London markets Oct. 4 with light, sweet crude prices dropping about $2/bbl while Brent crude price prices dropped about $1.70/bbl, which analysts attributed to volatility in US equity and bond markets.
PVM Oil Associates Ltd. analyst Stephen Brennock told the Wall Street Journal that oil prices dipped during “a bout of profit-taking…amid a sea of red across the broader risk asset complex, sparked by a selloff in US Treasury” notes.
Oil prices climbed again in early Oct. 5 trading on world supply concerns, particularly falling Iran oil exports. US oil sanctions are scheduled to be fully implemented against Iran in early November.
“After all, it is only a matter of time before a fresh injection of Iranian-induced…fuel reinvigorates the upward price march,” Brennock told WSJ on Oct. 4. Oil prices have risen in general in anticipation of US sanctions on Iran.
In May, US President Donald Trump announced a US withdrawal from an international agreement that lifted earlier sanctions against Iran in exchange for that nation’s cooperation on its nuclear program.
Energy prices
The light, sweet crude contract for November delivery on the New York Mercantile Exchange dropped $2.08 to $74.33/bbl on Oct. 4. The December contract declined $1.99 to settle at $74.25/bbl.
The NYMEX natural gas price for November was down 6.5¢ to a rounded $3.16/MMbtu. The Henry Hub cash gas was unavailable.
Ultralow-sulfur diesel for November fell nearly 4¢ to a rounded $2.40/gal. The NYMEX reformulated gasoline blendstock for November decreased nearly 4¢ to settle at a rounded $2.10/gal.
Brent crude oil for December dropped $1.71 to $84.58/bbl on London’s International Commodity Exchange. The January contract fell $1.67 to $84.16/bbl. The gas oil contract for October rose $2.50 to $743.25/tonne.
OPEC’s basket of crudes for Oct. 4 averaged $84.09/bbl, up 45¢.
Contact Paula Dittrick at [email protected]
