The crude oil benchmarks each dropped by more than $1.60/bbl on the New York and London markets Dec. 6 after a weekly US government report showed a surge in US crude oil production.
The US Energy Information Administration said production reached 9.7 million b/d for the week ended Dec. 1, up 25,000 bbl from the previous week.
Production across the Lower 48 was 9.19 million b/d, up 20,000 b/d while Alaska’s production was 516,000 b/d, up 5,000 b/d.
Eugen Weinberg, Commerzbank head of commodity research, said he expects oil prices will continue falling in coming months on rising US production.
Production of 9.7 million b/d was the highest since monthly figures showing US production of more than 10 million b/d during the early 1970s.
The jump in weekly production came as crude oil inventories declined.
EIA’s Weekly Petroleum Status Report said US commercial crude oil inventories, excluding the Strategic Petroleum Reserve, fell by 5.6 million bbl to 448.1 million bbl.
Energy prices
The January 2018 light, sweet crude contract on the New York Mercantile Exchange fell $1.66 on Dec. 6 to $55.96/bbl. The February 2018 contract dropped $1.64 to $56.03/bbl.
The NYMEX natural gas price for January edged up less than a penny to a rounded $2.92/MMbtu. The Henry Hub cash gas price also was $2.92/MMbtu, up 6¢.
Heating oil for January fell 5¢ to $1.86/gal. The NYMEX reformulated gasoline blendstock for January dropped nearly 6¢ to a rounded $1.66/gal.
The Brent crude contract for February 2018 on London’s ICE decreased $1.64 to $61.22/bbl. The March 2018 contract was down $1.61 to $61.03/bbl.
The gas oil contract for December was $545.75/tonne, down $10.50.
OPEC’s basket of crudes was $60.73/bbl on Dec. 6, down 14¢.
Contact Paula Dittrick at [email protected].
