MARKET WATCH: News of ample supply again force down crude prices

Crude prices were down again Dec. 4 on news of abundant supply.

Crude prices were down again Dec. 4 on news of abundant supply.

“Brent and WTI crude oil ended lower, down 0.6% and 0.9%, respectively, after Saudi Arabia announced considerable discounts for the crude sold to Asian and US buyers and reports suggested that Libya’s El Sharara oil field might be ready to resume output,” analysts with Raymond James & Associates Inc. said in a recent Energy Daily Update.

The New York Mercantile Exchange January crude oil contract declined 57¢ on Dec. 4, closing at $66.81/bbl. The February contract, meanwhile, fell 56¢ to $66.90/bbl.

The natural gas contract for January lost 15.6¢ to a rounded $3.65/MMbtu. The cash gas price at Henry Hub, La., was $3.55/MMbtu, losing 8¢.

Heating oil for January delivery dropped 1.57¢ to a rounded $2.12/gal. Reformulated gasoline stock for oxygenate blending for January dropped 1.22¢ to a rounded $1.80/gal.

The January 2015 ICE contract for Brent crude oil declined 28¢, closing at $69.64/bbl. The February contract fell 33¢ to $70.08/bbl. The ICE gas oil contract for December lost $12 to settle at $622/tonne.

The average price for OPEC’s basket of 12 benchmark crudes on Dec. 4 was $66.27/bbl, dropping $1.04.

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