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.

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 pdittrick@endeavorb2b.com.

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