MARKET WATCH: Oil benchmarks decline Sept. 20 but up for week
Brent crude for November delivery fell slightly to settle below $65/bbl in London Sept. 20 compared with the week’s high settlement of above $69/bbl on Sept. 16 following attacks on Saudi Arabia’s Abqaiq crude oil processing complex and Khurais oil field.
Even though prices declined after the price spike, Brent oil prices for November achieved the biggest 1-week percentage climb, up 6.7%, since the week ended Jan. 4, the Wall Street Journal reported.
US light, sweet crude futures on the New York market fell less than 0.1% to close just above $58/bbl on Sept. 20, posting a 5.9% weekly gain, WSJ records showed.
The price gains followed Sept. 14 drone attacks that took out more than half of Saudi Arabia’s crude output. But Saudi officials have reassured oil investors that oil production is being restored quickly.
Saudi Energy Minister Prince Abdulaziz bin Salman said oil production will be restored by Sept. 30 after an unmanned aircraft attack temporarily stopped 5.7 million b/d of production (OGJ Online, Sept. 18, 2019).
Saudi production capacity is expected to be partly restored to 11 million b/d by the end of September and fully restored to 12 million b/d by the end of November.
Han van Cleef, senior energy economist for ABN AMRO, said the market remains “somewhat suspicious and highly sensitive to supply-related news.”
He said, “And not without good reason, as the recent attacks show the vulnerability of the Saudi oil infrastructure. The Saudi authorities need to step up the protection of oil production facilities while at the same time ensuring they meet their obligations towards consumers.”
Energy prices
Light, sweet crude oil prices on the New York Mercantile Exchange for October delivery declined 4¢ to $58.09/bbl on Sept. 20 while the November contract dropped 10¢ to $58.09/bbl.
The October gas price decreased less than 1¢ to settle at $2.53/MMbtu on Sept. 20.
Ultralow-sulfur diesel for October dropped nearly 2¢ to $1.98/gal. The NYMEX reformulated gasoline blendstock for October fell 2¢ to a rounded $1.68/gal.
Brent crude for November fell 12¢ to $64.28/bbl. The December contract decreased 13¢ to settle at $63.20/bbl.
Gas oil for October gained $1.50 to $617.25/tonne on Sept. 20.
The average for the Organization of Petroleum Exporting Countries’ basket of crudes for Sept. 20 was $65.30/bbl, up 91¢.
Contact Paula Dittrick at [email protected].
About the Author
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.