MARKET WATCH: NYMEX crude for December drops by $1/bbl
The price of light, sweet crude oil for December delivery dropped $1 to settle under $61/bbl on the New York market Nov. 8 while Brent crude oil for January delivery dropped more than $1 to settle under $71/bbl.
During Nov. 9 trading, Brent crude oil fell below $70/bbl for the first time in 7 months while US oil future prices fell below $60/bbl during intraday trading.
A strengthening US dollar also pressured oil prices downward. The Wall Street Journal Dollar Index—which measures US currency against a basket of 16 others—was up 0.2%, having reversed its losses in recent weeks and extended its year-to-date climb to 5.3%.
Oil is traded in US dollars so a stronger dollar makes oil more expensive for buyers using other currencies.
Meanwhile, China’s daily crude oil imports rose to a record high in October, supported by record demand from private refiners, Reuters reported.
Chinese crude imports in October surged 32% compared with a year earlier to 40.8 million tonnes, or 9.61 million b/d, China’s General Administration of Customs showed, climbing from 9.05 million b/d in September. The previous daily record of 9.6 million b/d was set in April.
Energy prices
The December light, sweet crude contract on the New York Mercantile Exchange dropped $1 on Nov. 8 to $60.67/bbl. The January contract fell 96¢ to settle at $60.86/bbl.
The NYMEX natural gas price for December fell 1¢ to a rounded $3.54/MMbtu.
Ultralow-sulfur diesel for December fell nearly 7¢ to a rounded $2.17/gal. The NYMEX reformulated gasoline blendstock for December fell less than 1¢ to a rounded $1.64/gal.
Brent crude oil for January dropped $1.42 to $70.65/bbl on London’s International Commodity Exchange. The February contract declined $1.23 to $70.90/bbl. The gas oil contract for November decreased $11.25 on Nov. 8 to close at $681.50/tonne.
The Organization of Petroleum Exporting Countries’ basket of crudes for Nov. 8 averaged $70.68/bbl, up 5¢.
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.