MARKET WATCH: NYMEX, Brent crude oil prices close week with gain

Light, sweet crude oil gained modestly to close above $56/bbl for both October and November delivery on the New York market Sept. 6 while Brent for November delivery gained in London to close above $61/bbl.

Light, sweet crude oil gained modestly to close above $56/bbl for both October and November delivery on the New York market Sept. 6 while Brent for November delivery gained in London to close above $61/bbl.

Saudi Arabia has appointed Prince Abdulaziz bin Salman as its energy minister. On Sept. 9, he spoke at a meeting in Abu Dhabi where he suggested oil producers need to share greater responsibility to balance the market.

Previously, former Saudi Oil Minister Khalid al-Falih led an agreement to cut production among major oil producers. Al-Falih had been in the role since 2016 until Saudi Arabia announced a change on Sept. 8.

The Organization of Petroleum Exporting Countries and other major producers, including Russia, agreed in July to maintain oil-production cut targets of 1.2 million b/d into the first quarter of 2020. The Joint Ministerial Monitoring Committee meets in Abu Dhabi on Sept. 12 to review production levels.

In an August research note, Morgan Stanley lowered its oil price forecast, saying it expects Brent will average $60/bbl through Dec. 31, down from an earlier forecast of $65/bbl. For light, sweet crude oil during this year’s second half, Morgan Stanley lowered its forecast $55/bbl from $58/bbl.

In addition, Morgan Stanley reduced its oil demand growth forecast to 800,000 b/d from 1 million b/d for this year. For 2020, the bank reduced its forecast to 1 million b/d from an earlier forecast of 1.4 million b/d.

Morgan Stanley cited a weakening world economic outlook, anticipated weakening oil demand, and higher US shale production growth.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for October delivery increased 22¢ to $56.52/bbl on Sept. 6 while the November contract gained 27¢ to $56.43/bbl.

The October natural gas price on NYMEX declined 6¢ to settle at a rounded $2.49/MMbtu on Sept. 6.

Ultralow-sulfur diesel for October increased by a rounded 1.2¢ to $1.90/gal. The NYMEX reformulated gasoline blendstock for October gained nearly 1¢ to a rounded $1.57/gal.

Brent crude for November rose 59¢ to $61.54/bbl. The December contract increased 53¢ to settle at $60.57/bbl.

Gas oil for September declined by $10.75 to $575.50/tonne on Sept. 6.

The average for OPEC’s basket of crudes for Sept. 9 was $60.75/bbl, up 17¢.

Contact Paula Dittrick at pdittrick@endeavorb2b.com.

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