MARKET WATCH: NYMEX crude oil prices rose to nearly $45/bbl

Both light, sweet crude oil and Brent crude oil prices rose more than $1/bbl on the New York and London markets Aug. 10, but prices appeared to be falling again in early Aug. 11 trading upon news that China’s central bank devalued its currency.
Aug. 11, 2015
2 min read

Both light, sweet crude oil and Brent crude oil prices rose more than $1/bbl on the New York and London markets Aug. 10, but prices appeared to be falling again in early Aug. 11 trading upon news that China’s central bank devalued its currency.

A devalued yuan makes China’s oil imports more expensive because oil trades in dollars. China’s central bank said it was trying to make the midpoint more market based. The devaluation comes more than 10 years after China started a process to lift the value of its currency.

The Organization of Petroleum Exporting Countries said in its monthly report that the cartel’s production rose 101,000 b/d to 31.5 million b/d during July

“US production remains near the highest level in 4 decades although the commodity price is telling the US shale sector to shrink,” OPEC said in its report, which also forecast US production will rise this year and next year.

OPEC representatives said there is no proposal for any emergency meeting before the scheduled Dec. 4 meeting.

Energy prices

The September crude oil contract on the New York Mercantile Exchange rose $1.09 on Aug. 10 to settle at $44.96/bbl. The October contract was up $1.30 to $45.66/bbl.

The natural gas contract for September was up 4¢ to a rounded $2.84/MMbtu. The Henry Hub, La., gas price rose 5¢ to $2.85/MMbtu.

Heating oil for September delivery climbed nearly 5¢ to a rounded $1.59/gal. The price for reformulated gasoline stock for oxygenates blending for September rose 7¢ to a rounded $1.69/gal.

The September ICE contract for Brent crude rose $1.80 to $50.41/bbl on Aug. 10. The October contract was up $1.78 to $51.02/bbl. The ICE gas oil contract for September was up $11.25 to $481.50/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes for Aug. 10 was $47.32, up 37¢.

Contact Paula Dittrick at [email protected].

*Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.

About the Author

Paula Dittrick

Senior Staff Writer

Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.

Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.

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