MARKET WATCH: Brent, NYMEX crude prices drop

Oil prices settled lower Dec. 13 on markets in New York and London but held steady on Dec. 14 after the International Energy Agency said US supply is growing faster than expected.

IEA’s forecast came after the US Energy Information Administration said US oil production reached 9.78 million b/d for the week ended Dec. 8.

The international group released its Monthly Oil Market Report on Dec. 14, saying crude oil available on the world market rose 170,000 b/d in November to 97.8 million b/d.

IEA cited a surge in US shale production. Analysts note US production is counteracting efforts by the Organization of Petroleum Exporting Countries and other major producers to reduce world oil inventories.

On Nov. 30, OPEC and some other producers, including Russia, agreed to extend the production-cut targets through Dec. 31, 2018.

OPEC crude oil supply fell in November for a fourth consecutive month, to 32.36 million b/d, primarily on lower output from Saudi Arabia, Angola, and Venezuela, IEA said.

Energy prices

The January 2018 light, sweet crude contract on the New York Mercantile Exchange fell 54¢ on Dec. 13 to $56.60/bbl. The February contract dropped 57¢ to $56.59/bbl.

The NYMEX natural gas price for January 2018 increased by nearly 4¢ to a rounded $2.71/MMbtu. Meanwhile, the Henry Hub cash gas price fell by 15¢ to $2.67/MMbtu.

Ultralow-sulfur diesel for January 2018 fell nearly 3¢ to a rounded $1.90/gal. The NYMEX reformulated gasoline blendstock for January 2018 decreased 5¢ to a rounded $1.65/gal.

The Brent crude contract for February 2018 on London’s ICE dropped 90¢ to $62.44/bbl. The March 2018 contract fell 92¢ to $61.81/bbl.

The gas oil contract for January was $562.75/tonne, down $10.

OPEC’s basket of crudes was $61.50/bbl on Dec. 13, down $1.25.

Contact Paula Dittrick at paulad@ogjonline.com.