MARKET WATCH: Crude oil benchmarks fall on higher US inventories
Light, sweet crude oil prices declined on the New York market by about $1/bbl on Oct. 2 after a US government report showed oil inventories, excluding the Strategic Petroleum Reserve, increased by 3.1 million bbl for the week ended Sept. 27.
The US Energy Information Administration estimated the oil inventory at 422.6 million bbl, putting crude oil supplies at the 5-year average for this time of year (OGJ Online, Oct. 2, 2019).
EIA’s Weekly Petroleum Status Report showed oil production fell to 12.4 million b/d for the week ended Sept. 27, down 100,000 b/d from the previous week.
Barclays Capital analyst Amarpreet Singh said, “Oil markets are back from a short trip to supply anxiety. As expected, market participants looked past the attacks on Saudi oil facilities that shut more than half the country's output, as the disruption proved to be short-lived.”
Energy prices
Light, sweet crude oil prices on the New York Mercantile Exchange for November fell 98¢ to $52.64/bbl on Oct. 2 while the December contract dropped 99¢ to $52.51/bbl.
The November natural gas price edged down by 3¢ to a rounded 2.25/MMbtu on Oct. 2.
Ultralow-sulfur diesel for October dropped 3¢ to a rounded $1.87/gal. The NYMEX reformulated gasoline blendstock for November fell nearly 3¢ to $1.54/gal.
Brent crude for December fell $1.20 to $57.69/bbl. The January contract declined $1.13 to settle at $57.04/bbl.
Gas oil for October dropped $16.75 to $570.50/tonne on Oct. 2. The Organization of Petroleum Exporting Countries’ basket of crudes on Oct. 2 was $58.72/bbl, down 93¢.
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.
