MARKET WATCH: NYMEX crude oil prices drop for third trading session

Crude oil futures prices settled lower for a third consecutive trading session Sept. 8 on the New York market, and the front-month price for US light, sweet crude reached its lowest level since Jan. 14 awaiting a weekly government oil inventory report.

Crude oil futures prices settled lower for a third consecutive trading session Sept. 8 on the New York market, and the front-month price for US light, sweet crude reached its lowest level since Jan. 14 awaiting a weekly government oil inventory report.

Meanwhile, Brent crude prices for October delivery also dropped on London’s ICE futures exchange, marking that commodity’s lowest front-month settlement since May 1, 2013. Analysts attributed the fall in Brent crude prices to apparent calmness in Ukraine.

Officials from the European Union and Canada said Sept. 9 that they continue to closely monitor news from Ukraine, but they are optimistic that a ceasefire between Russia and Ukraine could hold despite some ongoing tensions.

The European Union has proposed additional sanctions against Russia for its escalated military presence in Ukraine. The latest sanctions would target Russian energy, banking, and military industries.

Ukraine urged the EU to implement its proposed additional sanctions on Russia “without delay” on Sept. 9. EU officials adopted the measures on Sept. 8 but decided to wait before imposing them.

Energy prices

The New York Mercantile Exchange October crude oil contract fell on Sept. 8, declining 63¢ to $92.66/bbl. The November contract dropped 66¢ to $92.05/bbl.

The natural gas contract for October gained 8.3¢ to a rounded $3.88/MMbtu. On the US cash market, gas at Henry Hub, La., was $3.85/MMbtu, up 1¢ from the Sept. 5 settlement.

Heating oil for October delivery was down less than a penny to a rounded $2.81/gal. Reformulated gasoline stock for oxygenate blending for October delivery dropped 2.15¢ to a rounded $2.56/gal.

The October ICE contract for Brent crude delivery was down 62¢ to $100.20/bbl. The November Brent contract declined 54¢ to $100.86/bbl. The ICE gas oil contract for September dropped $4.50 to $847.25/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes on Sept. 8 was $97/bbl, down $1.38/bbl.

Contact Paula Dittrick at paulad@ogjonline.com.

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