MARKET WATCH: Brent crude oil futures drop below $98/bbl

Crude oil prices dropped on both the New York and the London markets on Sept. 22 with Brent crude oil prices for December dropping below $98/bbl.

Crude oil prices dropped on both the New York and the London markets on Sept. 22 with Brent crude oil prices for December dropping below $98/bbl.

Barclays Inc. analysts issued a weekly market outlook saying they believe the Brent-West Texas Intermediate spread could widen to about $8/bbl during the fourth quarter. The spread for November Brent-WTI contracts has been less than $6/bbl in recent days.

“US natural gas production growth provides comfort to the market as the end of October approaches with relatively low storage levels,” Barclays analysts said. “This cushion has allowed storage to build more quickly than in the past and should remain a feature of the market for the foreseeable future.”

Energy prices

The New York Mercantile Exchange October crude oil contract lost 89¢ to $91.52/bbl on Sept. 22. The November contract declined 78¢ to $90.87/bbl.

The natural gas contract for October increased 1.3¢ to $3.85/MMbtu. On the US cash market, gas at Henry Hub, La., edged down a penny to $3.89/MMbtu.

Heating oil for October delivery was down a rounded 3¢ to a rounded $2.69/gal. Reformulated gasoline stock for oxygenate blending for October relinquished a rounded 2.7¢ to settle at a rounded $2.58/gal.

The December ICE contract for Brent crude delivery dropped $1.33 to $97.70/bbl, while the January contract fell $1.23 to $98.35/bbl. The ICE gas oil contract for October declined $8.25 to $815/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes on Sept. 22 was $94.37/bbl, dropping 7¢.

Contact Paula Dittrick at paulad@ogjonline.com.

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