MARKET WATCH: NYMEX oil benchmarks falls on slowing US manufacturing
Light, sweet crude oil prices fell moderately Oct. 1 on the New York market, settling at $53.62/bbl after reports of slowing US manufacturing while Brent crude for December also fell to settle at $58.89/bbl.
The Institute of Supply Management showed US factory activity fell in September to its lowest level since June 2009. The instate reported its manufacturing index fell to 47.8 in September, down from 49.1 in August.
Readings above 50 indicate activity is expanding across the manufacturing sector, while those below 50 are a sign of contraction. The August statistics marked the first drop in 3 years. The July index was 51.2, the institute reported.
Previous reports have showed a manufacturing slowdown elsewhere, such as the UK, Germany, Japan, and South Korea.
Meanwhile, benchmark crude oil prices have lost all the gains since Sept. 16 price spikes followed reports of Sept. 14 attacks on Saudi Arabia oil processing plants at Abqaiq and at the Khurais oil field.
Bloomberg reported Abqaiq capacity was restored to 4.9 million b/d compared with full capacity of 5.5 million b/d before the attacks. Khurais is operating at 1.3 million b/d compared with 1.5 million b/d before the attacks.
State oil producer Saudi Aramco has boosted total production capacity to more than 11 million b/d, Bloomberg said in a Sept. 25 story that citied “people with knowledge of the situation.”
Energy prices
Light, sweet crude oil prices on the New York Mercantile Exchange for November decreased 45¢ to $53.62/bbl on Oct. 1 while the December contract fell 48¢ to $53.50/bbl.
The November natural gas price dropped by nearly 5¢ to $2.28/MMbtu on Oct. 1.
Ultralow-sulfur diesel for October edged up less than 1¢ to a rounded $1.90/gal. The NYMEX reformulated gasoline blendstock for November rose nearly 1¢ to $1.57/gal.
Brent crude for November held unchanged at $61.91/bbl. The December contract declined 36¢ to settle at $58.89/bbl.
Gas oil for October dropped $3 to $587.25/tonne on Oct. 1. The Organization of Petroleum Exporting Countries’ basket of crudes on Oct. 1 was $59.65/bbl, down $1.44.
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.