MARKET WATCH: Oil prices drop in volatile US Labor Day trading

Light, sweet crude oil prices dropped by more than $1/bbl on the New York market on Aug. 30—the final trading session of August. With many US traders already off for the long Labor Day holiday weekend, energy commodity prices showed high volatility on thin trading volumes.

US markets were closed on Sept. 2 for the holiday.

Although not expected to enter the Gulf of Mexico, Hurricane Dorian strengthened as it stalled Sept. 1-2, reaching Category 5 strength. Forecasters said it was headed on an uncertain path for the southeastern US coast after having moved less than 100 miles in 24 hr, stalling northeast of Freeport in the Bahamas.

On Sept. 3, Dorian was expected to move slowly north, passing dangerously close to Florida and the southeastern US coast.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for September delivery decreased $1.61 to $55.10/bbl on Aug. 30 while the October contract fell $1.56 to $54.89/bbl.

The October gas price on NYMEX fell 1¢ to settle at $2.28/MMbtu on Aug. 30 after the front-month contract reached its high level in more than a month earlier in the week.

Ultralow-sulfur diesel for September decreased nearly 4¢ to $1.82/gal. The NYMEX reformulated gasoline blendstock for September decreased 7¢ to a rounded $1.61/gal.

Brent crude for October held unchanged at $61.08/bbl. The November contract declined by $1.24 to settle at $59.25/bbl.

Gas oil for September decreased $10.75 to $561/tonne on Aug. 30.

The average for the Organization of Petroleum Exporting Countries’ basket of crudes for Aug. 30 was $60.11/bbl and was $58.76/bbl for Sept. 2.

Contact Paula Dittrick at pdittrick@endeavorb2b.com.