MARKET WATCH: Crude oil benchmarks fall as trade talk details fall short

Oct. 15, 2019
Oil benchmark prices on Oct. 14 slipped from gains made on Oct. 11 with light, sweet crude oil prices on the New York market and Brent crude oil prices in London both falling more than $1/bbl.

Oil benchmark prices on Oct. 14 slipped from gains made on Oct. 11 with light, sweet crude oil prices on the New York market and Brent crude oil prices in London both falling more than $1/bbl.

Late on Oct. 11, US President Donald Trump said a breakthrough had been made regarding US-China trade talks. The announcement led to a boost in Brent and West Texas Intermediate, but the gains were later erased as it was determined the 13th round of talks yielded little in the way of substantial agreements.

Existing tariffs remain in place, but the proposed hike on an additional $250 billion worth of Chinese imports has been suspended and, according to the president, China will purchase up to $50 billion in US agricultural products.

“The oil market is taking a cautious stance as to what comes next given that the thorny issues of industrial policy, intellectual property rights, technology transfer among others were not addressed,” said Harry Tchilinguirian, a BNP Paribas oil strategist, in a CNBC report.

Energy prices

Light, sweet crude oil prices on the New York Mercantile Exchange for November dropped $1.11 to $53.59/bbl on Oct. 14 while the December contract decreased $1.13 to $53.65/bbl.

The November natural gas price increased a rounded 7¢ to $2.28/MMbtu on Oct. 14.

Ultralow-sulfur diesel for November dropped 4¢ to a rounded $1.92/gal. The NYMEX reformulated gasoline blendstock for November dipped a rounded 3¢ to $1.61/gal.

Brent crude for December fell $1.16 to $59.35/bbl. The January contract was down $1 to settle at $59.12/bbl.

Gas oil for November decreased $16.50 to $579.25/tonne on Oct. 14. The Organization of Petroleum Exporting Countries’ basket of crudes on Oct. 14 was $59.95/bbl, down $1.