MARKET WATCH: NYMEX, Brent oil prices rise $2/bbl
Crude oil prices moved sharply higher on Aug. 22 on New York and London markets, jumping by more than $2/bbl after a weekly government reported showed a drop in US crude oil supplies.
US crude oil inventories, excluding the Strategic Petroleum Reserve, decreased by 5.8 million bbl to 408.4 million bbl for the week ended Aug. 17, said the US Energy Information Administration (OGJ Online, Aug. 22, 2018).
EIA’s Petroleum Status Report said US production rose by 100,000 b/d for the week ended Aug. 17 to 11 million b/d.
US and Chinese officials gathered for a second day of scheduled trade talks in Washington, DC, on Aug. 23. Both countries have been imposing a series of tariffs on one another.
“If a trade war would escalate, it would start to affect global growth, and therefore global demand growth, which would lead to lower oil prices,” said Hans van Cleef, ABN Amro senior energy economist.
Moty Kuperberg, director of oil and gas for Dynamic Shipping Services Ltd., in Haifa, Israel, maintains an earlier forecast for Brent oil prices at $62-68/bbl in September. He anticipates US light, sweet crude oil futures will be about $1-1.50/bbl lower than Brent.
“No one was surprised from the sanctions on Iran, just like no one was surprised from the continuous chaos in Venezuela. Both countries, just like Iraq and Libya in the last decade, and Iran and Iraq during the 8 years’ war in the Persian Gulf 1980-88, should be ignored and left out of our day-to-day energy equation,” Kuperberg told OGJ. He also leads the Independent Energy Security Agency, which monitors world oil prices.
Energy prices
The light, sweet crude contract for October delivery on the New York Mercantile Exchange gained $2.02 to close at $67.86/bbl on Aug. 22. The September contract has expired. The November contract increased $2.02 to settle at $67.51/bbl.
The NYMEX natural gas price for September dropped 2¢ to a rounded $2.96/MMbtu. The Henry Hub cash gas price decreased 2¢ to $2.99/MMbtu.
Ultralow-sulfur diesel for September gained 4¢ to a rounded $2.17/gal. The NYMEX reformulated gasoline blendstock for September rose 5¢ to a rounded $2.07/gal.
Brent crude oil for October shot up $2.15 to $74.78/bbl on London’s International Commodity Exchange. The November contract increased $2.16 to settle at $75.07/bbl. The gas oil contract for September was $663.75/tonne on Aug. 22, up $12.20.
The Organization of Petroleum Exporting Countries’ basket of crudes for Aug. 22 was $71.75/bbl, up 74¢.
Contact Paula Dittrick at [email protected].
About the Author
Paula Dittrick
Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.