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].
