MARKET WATCH: Crude oil benchmarks fall on global growth concerns

Oct. 16, 2019
Light, sweet crude oil prices dropped below $53/bbl on Oct. 15 on the New York market while Brent crude oil prices settled under $59/bbl on concerns about global growth.

Light, sweet crude oil prices dropped below $53/bbl on Oct. 15 on the New York market while Brent crude oil prices settled under $59/bbl on concerns about global growth.

Citing the US-China trade war as a key driver, the International Monetary Fund warned Oct. 15 that its most recent World Economic Outlook report forecasts 2019 gross domestic product growth at 3%, down from the 3.2% it forecast in July. The pace would be the slowest since the 2008-09 financial crisis, IMF said.

Growing tensions between the two countries results in weak business confidence.

“As policy priorities go, undoing the trade barriers put in place with durable agreements and reining in geopolitical tensions top the list. Such actions can significantly boost confidence, rejuvenate investment, halt the slide in trade and manufacturing, and raise world growth,” said Gita Gopinath, IMF economic counsellor, as part of the report.

Energy prices

Light, sweet crude oil prices on the New York Mercantile Exchange for November dropped 78¢ to $52.81/bbl on Oct. 15 while the December contract decreased 77¢ to $52.88/bbl.

The November natural gas price increased a rounded 6¢ to a rounded $2.34/MMbtu on Oct. 15.

Ultralow-sulfur diesel for November dropped less than 1¢ to a rounded $1.91/gal. The NYMEX reformulated gasoline blendstock for November dipped less than 1¢ to remain at $1.61/gal.

Brent crude for December fell 61¢ to $58.74/bbl. The January contract was down 58¢ to settle at $58.54/bbl.

Gas oil for November increased $12.45 to $583.50/tonne on Oct. 15. The Organization of Petroleum Exporting Countries’ basket of crudes on Oct. 15 was $59.62/bbl, down 33¢.