MARKET WATCH: Crude oil benchmarks fall on higher US inventories

Light, sweet crude oil prices declined nearly $1/bbl on the New York market Nov. 6 after a US government report showed oil inventories, excluding the Strategic Petroleum Reserve, increased by 7.9 million bbl for the week ended Nov. 1.

The US Energy Information Administration estimated the oil inventory at 446.8 million bbl, putting crude oil supplies 3% above the 5-year average for this time of year (OGJ Online, Nov. 6, 2019).

The light, sweet crude contract for December on the New York Mercantile Exchange was down 88¢ to $56.35/bbl on Nov. 6. The January contract was down 91¢ to settle at $56.38/bbl.

The NYMEX natural gas price for December fell 3¢ to a rounded $2.83/MMbtu. The January contract was down 3¢ to a rounded $2.91/MMbtu.

Ultralow-sulfur diesel for December decreased almost 3¢ to a rounded $1.93/gal. The NYMEX reformulated gasoline blendstock for December fell nearly 5¢ to a rounded $1.63/gal.

Brent crude oil for January was down $1.22 to $61.74/bbl on London’s International Commodity Exchange. The February contract was down $1.24 to $60.89/bbl.

The gas oil contract for November was $586.75/tonne on Nov. 6, down $2.75.

The Organization of Petroleum Exporting Countries’ basket of crudes for Nov. 6 was $62.39/bbl, down 18¢ from the previous day.