Crude oil prices rose more than $1/bbl on the New York market Sept. 29, and the premium of Brent crude over US light, sweet crude was less than $3/bbl as Brent for November delivery rose only modestly.
Oil prices ended on a mixed note last week, resulting in a West Texas Intermediate-Brent spread of $3.46/bbl as of the Sept. 26 settlement prices for November delivery. Crude prices on the New York Mercantile Exchange gained overall last week and have been up for 2 consecutive weeks.
Meanwhile, Brent crude prices declined again last week and have declined 5 out of 7 weeks.
Barclays Research analysts issued a Sept. 29 research note saying Brent futures prices “have fallen precipitously over the last 2 months, and Saudi Arabia is unlikely to unilaterally bear the brunt of the demand-related adjustment.”
Kevin Norrish of Barclays in London said, “The return of Libyan production and shift in Iranian exports shows that OPEC producers are likely to adjust supplies, but that adjustment will not be immediate.”
Barclays also said that “economic signals continue to disappoint, and the beginnings of a protracted war in the Middle East are set to support prices and destabilize the world’s most important crude exporting region.”
Energy prices
The NYMEX November crude oil contract rose $1.03 on Sept. 29, closing at $94.57/bbl. The December contract gained 87¢ to $93.49/bbl.
The natural gas contract for November increased 12.5¢ to a rounded $4.15/MMbtu. On the US cash market, gas at Henry Hub, La., was $4.02/MMbtu, up 12¢.
Heating oil for October delivery edged up less than a penny to a rounded $2.70/gal. Reformulated gasoline stock for oxygenate blending for October gained 3.4¢ to a rounded $2.70/gal.
The November ICE contract for Brent crude delivery rose 20¢, closing at $97.20/bbl, while the December contract was up 18¢ to $97.81/bbl. The ICE gas oil contract for October gained $2.25 to settle at $815/tonne.
The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes on Sept. 29 was $94.54/bbl, up 41¢.
Contact Paula Dittrick at [email protected].
