MARKET WATCH: Brent crude oil settles above $62.70/bbl
Crude oil benchmarks settled mixed in Sept. 26 trading. Brent crude oil for November delivery gained modestly to settle above $62.70/bbl on the London market while light, sweet crude oil for November declined for a third consecutive day in New York but held above $56.40/bbl.
Meanwhile, US natural gas futures prices fell Sept. 26 after the US Energy Information Administration’s Weekly Natural Gas Storage Report showed natural gas levels stored in underground storage across the Lower 48 rose more than analysts had expected.
Gas storage inventories jumped by 102 bcf to 3.2 tcf for the week ended Sept. 20. Analysts surveyed by the Wall Street Journal before the report’s release had forecast a gain of only 89 bcf.
EIA said gas storage levels were 444 bcf higher than last year at this time and 47 bcf below the 5-year average of 3.25 tcf.
Following an initial surge in oil prices, crude futures generally have fallen since the Sept. 14 attacks on Saudi Arabia oil processing facilities and an oil field.
Meanwhile, oil investors remain nervous about the outlook of US-China trade relations after US President Donald Trump’s Sept. 23 speech to the United Nations.
Trump accused China of unfair trade practices, including “massive” market barriers, currency manipulation, and intellectual property theft.
“Hopefully we can reach an agreement that will be beneficial for both countries,” Trump said. “As I have made very clear, I will not accept a bad deal.”
Energy prices
Light, sweet crude oil prices on the New York Mercantile Exchange for November decreased 8¢ to $56.41/bbl on Sept. 26 while the December contract fell 4¢ to $56.28/bbl.
The October natural gas price dropped by 7¢ to $2.43/MMbtu on Sept. 26, setting a 3-week low.
Ultralow-sulfur diesel for October edged up a fraction of a penny to remain at a rounded $1.95/gal. The NYMEX reformulated gasoline blendstock for October increased by nearly 4¢ to $1.66/gal.
Brent crude for November added 35¢ to $62.74/bbl. The December contract gained 31¢ to settle at $61.74/bbl.
Gas oil for October fell $3.25 to $593.25/tonne on Sept. 26. The average for OPEC’s basket of crudes for Sept. 26 was $62.31/bbl, down 4¢.
Contact Paula Dittrick at [email protected].
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.
