MARKET WATCH: Oil, gas prices ease slightly
Both oil and natural gas prices eased slightly Nov. 12 in the New York markets. US stock markets dropped overall on Nov. 12 “amid fears that China may raise interest rates to slow down its quickly expanding economy,” according to analysts at Raymond James & Associates Inc.
By OGJ editors
HOUSTON, Nov. 15 -- Both oil and natural gas prices eased slightly Nov. 12 in the New York markets. US stock markets dropped overall on Nov. 12, in fact, “amid fears that China may raise interest rates to slow down its quickly expanding economy,” according to analysts at Raymond James & Associates Inc.
“The broader market fell 1% after figures were released showing that inflation in China had grown 4.4% in October, far above the government's official target of 3%,” RJA analysts said.
Taking more of a beating were crude prices, they said, falling “about 3% on fears that China’s appetite for crude could be reduced if Beijing were to further cool its economy.”
They said, “Energy stocks joined the party, as well, with corresponding drops by the OSX and EPX of 3% and 2%, respectively.”
Separately, RJA analysis said, “the National Weather Service's 8-14 day outlook for the Nov. 22-28 period is calling for below-average temperatures to blanket the upper half of the US, providing support to natural gas prices.”
The December contract for benchmark US light, sweet crudes decreased $2.93 to $84.88/bbl on the New York Mercantile Exchange. The January contract fell $2.94 to $85.34/bbl. On the US spot market, WTI at Cushing, Okla., was down $2.93 to $84.88/bbl.
Heating oil for December delivery lost 6.34¢ to $2.36/gal on NYMEX. Reformulated blend stock for oxygenate blending for the same month declined 2.6¢ to $2.21/gal.
The December natural gas contract fell 12.8¢ to $3.799/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., was unreported. On Nov. 12, gas at Henry Hub settled at $3.75/MMbtu.
In London, the December IPE contract for Brent crude decreased $2.47 to $86.34/bbl. Gas oil for December lost $16 to $742.25/tonne.
The average price for the Organization of Petroleum Exporting Countries' basket of 12 reference crudes was down $2.14 to $83.67/bbl on Nov. 12.