MARKET WATCH: Oil prices ‘stabilize’ during ‘quiet week’
Oil and gas markets are closing out the week on a “relatively quiet” note with many industry segments “trying to weigh the impact of several key developments such as the weaker dollar, rising equities, trade talks, as well as Brexit developments,” according to a Saxo Bank analyst.
Ole Hansen, head of commodity strategy, noted that the International Monetary Fund “downgraded global growth to the lowest level since the global financial crisis while China, the world’s biggest consumer of raw materials, saw its [third quarter gross domestic product] slow to 6%, the weakest since the early 1990’s.”
On the US dollar weakness, Hansen said it was “spearheaded” by strength of the British pound and the European Union euro. “The potential for a Brexit deal helped drive Sterling to a 5-month high while the euro, the favorite short among speculators, reached a 7-week high,” he said.
About ongoing trade talks, Hansen said, “A combination of a weak demand at home and lower exports due to the ongoing trade war with the US has taken its toll on Chinese growth, although recent economic data point to signs of green shoots beginning to emerge.”
Energy prices
Light, sweet crude oil prices on the New York Mercantile Exchange for November gained 57¢ to $53.93/bbl on Oct. 17 while the December contract increased 58¢ to $54.03/bbl.
The November natural gas price increased 1.5¢ to a rounded $2.32/MMbtu on Oct. 17. The December contract reached a rounded $2.52/MMbtu, up 2.1¢.
Ultralow-sulfur diesel for November gained a less than a penny to settle at a rounded $1.95/gal.
The NYMEX reformulated gasoline blendstock for November gained less than a cent to remain at a rounded $1.62/gal.
Brent crude for December gained 49¢ to $59.91/bbl. The January contract was up 30¢ to settle at $59.46/bbl.
Gas oil for November fell $3.75 to $584/tonne on Oct. 17.
The Organization of Petroleum Exporting Countries’ basket of crudes on Oct. 17 was $59.54/bbl, up 26¢.