MARKET WATCH: Oil benchmark prices drop; Brent settles under $60/bbl
Crude oil benchmarks dropped by more than $1.80/bbl on New York and London markets with Brent for October settling under $60/bbl on Aug. 14 after having closed at $61.30/bbl on Aug. 13.
Ole Hansen, Saxo Bank head of commodity strategy, notes the discount for light, sweet crude oil to Brent front-month crude oil narrowed from $11/bbl in June to less than $5/bbl currently.
“The spread has narrowed in response to the global slowdown impacting Brent, the global benchmark, and increased concerns that US shale oil producers will struggle to meet their production growth targets,” Hansen said.
Harold Hamm, chief executive officer of Continental Resources, recently told an EnerCom energy conference in Denver that US shale producers “need to make sure we don’t oversupply the market.”
Energy prices
Light, sweet crude oil on the New York Mercantile Exchange for September delivery dropped $1.87 to $55.23/bbl on Aug. 14 while the October contract declined $1.85 to $55.25/bbl.
The NYMEX natural gas price for September edged down less than 1¢ to a rounded $2.14/MMbtu.
Ultralow-sulfur diesel for September fell 3¢ to $1.84/gal. The NYMEX reformulated gasoline blendstock for September decreased 6¢ to a rounded $1.67/gal.
Brent crude for October fell $1.82 to $59.48/bbl. The November contract dropped $1.85 to settle at $59.06/bbl.
Gas oil for September declined $15 to $561/tonne on Aug. 14.
The average for the Organization of Petroleum Exporting Countries’ basket of crudes for Aug. 14 was unavailable.
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.
