MARKET WATCH: Crude oil benchmarks end week with a gain
Oil benchmark prices rose Oct. 4 to end the week with light, sweet crude contracts for December settling below $53/bbl on the New York market while the Brent crude contract for December settled just under $58.40/bbl.
Ole Hansen, Saxo Bank head of commodity strategy, said, “The overriding focus this week will be the resumption of US-China talks” on Oct. 10.
Hansen noted that Chinese officials recently indicated “a reluctance to agree to a comprehensive trade deal. While growth and demand worries knocked 5.5% off the [Brent oil] price last week, traders may be reluctant to drive the price lower at this stage with geopolitical risks still elevated.”
He listed three geopolitical risks:
• Lack of progress of resolving tensions in the Middle East between Saudi Arabia and Iran.
• Turkish forces stand ready to invade northern Syria.
• Antigovernment protests in Iraq, which is the Organization of Petroleum Exporting Countries' second-largest producer.
Energy prices
Light, sweet crude oil prices on the New York Mercantile Exchange for November rose 36¢ to $52.81/bbl on Oct. 4 while the December contract gained 38¢ to $52.74/bbl.
The November natural gas price gained 2¢ to a rounded 2.35/MMbtu on Oct. 4.
Ultralow-sulfur diesel for November gained nearly 2¢ to a rounded $1.89/gal. The NYMEX reformulated gasoline blendstock for November rose by a rounded 2¢ to $1.57/gal.
Brent crude for December climbed 66¢ to $58.37/bbl. The January contract also was up 68¢ to settle at $57.74/bbl.
Gas oil for October gained $13.50 to $579.75/tonne on Oct. 4. OPEC’s basket of crudes on Oct. 4 was $58.59/bbl, up 63¢.
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.
