MARKET WATCH: Brent for November approaches $61/bbl

Brent crude oil on the London market rose to approach $61/bbl on Sept. 5 while light, sweet crude prices gained only slightly in New York after having rallied more than $2/bbl the previous day.

Brent crude oil on the London market rose to approach $61/bbl on Sept. 5 while light, sweet crude prices gained only slightly in New York after having rallied more than $2/bbl the previous day.

US oil futures reached a Sept. 5 trading session high of $57.76/bbl but fell to $56.30/bbl by closing, which analysts attributed to lingering concerns about US-China trade talks.

The Chinese Commerce Ministry said US and Chinese negotiators will meet in early October to resume talks about import duties and intellectual property rights.

Separately, the US Energy Information Administration reported US crude oil supplies, excluding the Strategic Petroleum Reserve, declined by 4.8 million bbl for the week ended Aug. 30. The report was released a day later than usual because of the Labor Day holiday in the US.

At 423 million bbl, US crude oil inventories are at a 5-year average for this time of year, EIA said in its latest report.

EIA’s Weekly Petroleum Status Report also said US production for the week ended Aug. 30 was 12.4 million b/d, down 100,000 b/d from the previous week.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for October delivery increased 4¢ to $56.30/bbl on Sept. 5 while the November contract gained 6¢ to $56.16/bbl.

The October natural gas price on NYMEX declined 1¢ to settle at a rounded $2.43/MMbtu on Sept. 5.

Ultralow-sulfur diesel for October increased less than 1¢ to remain at $1.88/gal. The NYMEX reformulated gasoline blendstock for October gained 1¢ to a rounded $1.54/gal.

Brent crude for November rose 25¢ to $60.95/bbl. The December contract increased 21¢ to settle at $60.04/bbl.

Gas oil for September jumped by $12.25 to $586.25/tonne on Sept. 5.

The average for the Organization of Petroleum Exporting Countries’ basket of crudes for Sept. 5 was $60.58/bbl, up $1.61.

Contact Paula Dittrick at pdittrick@endeavorb2b.com.

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