MARKET WATCH: Oil prices fall on New York, London markets

Sept. 25, 2019
Crude oil benchmarks for November and December fell by more than $1/bbl on markets in New York and London, settling at their lowest levels in about a week, which analysts attribute to indications that Saudi Arabia is restoring production as planned.

Crude oil benchmarks for November and December fell by more than $1/bbl on markets in New York and London, settling at their lowest levels in about a week, which analysts attribute to indications that Saudi Arabia is restoring production as planned and on concerns about the world economy.

More than half of Saudi output was hampered by Sept. 14 drone and missile attacks although Saudi officials have since reassured oil investors that oil production is being restored quickly (OGJ Online, Sept. 18, 2019).

Reuters reported Sept. 23 that Saudi Arabia had restored more than 75% of crude output and would return to full volumes by early next week.

Another factor supporting oil prices was a Reuters report that Iranian President Hassan Rouhani said Sept. 24 that he was open to discuss small changes to the 2015 nuclear deal if US officials lift sanctions against Iran.

While in New York, Rouhani told Reuters that he would be open to discuss “small changes, additions, or amendments” to an earlier international agreement regarding Iran’s nuclear program.

US President Donald Trump has said he has no intention of lifting sanctions on Iran.

Manufacturing statistics for Europe fell in September to the worst level in about 7 years. The Eurozone Manufacturing Purchasing Managers Index fell to an 83-month low of 45.6 in September, down from 47 in August. The German manufacturing PMI fell to 41.4 in September from 43.5 in August.

Energy prices

Light, sweet crude oil prices on the New York Mercantile Exchange for November decreased $1.35 to $57.29/bbl on Sept. 24 while the December contract fell $1.34 to $57.08/bbl.

The October natural gas price decreased by slightly more than 2¢ to $2.50/MMbtu on Sept. 24.

Ultralow-sulfur diesel for October dropped a rounded 3¢ to a rounded $1.97/gal. The NYMEX reformulated gasoline blendstock for October also declined a rounded 3¢ to $1.65/gal.

Brent crude for November fell $1.67 to $63.10/bbl. The December contract decreased $1.61 to settle at $62.12/bbl.

Gas oil for October fell $6 to $606/tonne on Sept. 24. The average for OPEC’s basket of crudes for Sept. 24 was $63.93/bbl, down 58¢.

Contact Paula Dittrick at [email protected].