MARKET WATCH: NYMEX oil drops below $60/bbl after Hurricane Barry
Light, sweet crude oil contracts for August and September fell about 60¢ to settle below $60/bbl on the New York market July 15 as US oil companies begin restoring some of the nearly 74% of oil production that was shut in the Gulf of Mexico ahead of Hurricane Barry.
US crude prices had climbed above $60/bbl recently with the approach of the hurricane, which was quickly downgraded to a tropical storm after making landfall in Louisiana on July 13.
The US Bureau of Safety and Environmental Enforcement reported 1.3 million b/d of oil production offline in the gulf on July 15, which was 80,000 b/d lower than BSEE reported on July 14.
The latest available BSEE estimate showed 69.08% of current gulf oil production was shut in and 60.58% of the natural gas production, or 1.684 bcfd, as of July 15.
Based on data from offshore operator reports submitted as of 11:30 a.m. CDT on July 15, personnel had been evacuated from 267 production platforms, or about 39.9% of the manned platforms in the gulf, BSEE said.
Energy prices
Light, sweet crude oil on the New York Mercantile Exchange for August delivery decreased 63¢ to $59.58/bbl on July 15 while the September contract dropped 62¢ to $59.68/bbl.
NYMEX natural gas for August decreased 4¢ to a rounded $2.41/MMbtu.
Ultralow-sulfur diesel for August dropped nearly 3¢ to a rounded $1.95/gal. The NYMEX reformulated gasoline blendstock for August decreased nearly 5¢ to a rounded $1.93/gal.
Brent crude for September fell 24¢ to $66.48/bbl. The October price decreased 42¢ to settle at $65.92/bbl.
The gas oil contract for August fell $4.50 to $600.50/tonne on July 15.
The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $66.79/bbl on July 15, down 57¢.
Contact Paula Dittrick at [email protected].
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.
