MARKET WATCH: Crude oil prices fall on growing US supply forecasts
Crude oil benchmarks fell in Nov. 6 trading on markets in New York and London, which analysts attributed to traders and investors acknowledging upside supply risks given that US oil production has been rising and is expected to continue doing so.
The American Petroleum Institute on Nov. 6 reported US oil supplies rose 7.8 million bbl for the week ended Nov. 2.
Separately, the US Energy Information Administration lifted its US oil production forecasts to nearly 11 million b/d in 2018 and 12 million b/d in 2019. The EIA was scheduled on Nov. 7 to release its weekly inventory on US oil and product levels.
Meanwhile, the Organization of Petroleum Exporting Countries and some non-OPEC producers are scheduled to discuss production levels during a Nov. 11 meeting in Abu Dhabi.
OPEC and 10 non-OPEC producers, led by Russia, agreed in late June to gradually increase crude production after holding back output for more than a year. They agreed in June to comply 100% with production-cut targets but will no longer hold back output any more than 100%.
Energy prices
The December light, sweet crude contract on the New York Mercantile Exchange dropped 89¢ on Nov. 6 to $62.21/bbl. The January contract fell 87¢ to settle at $62.34/bbl.
The NYMEX natural gas price for December was down 1¢ to a rounded $3.56/MMbtu.
Ultralow-sulfur diesel for December dropped less than 1¢ to a rounded $2.18/gal. The NYMEX reformulated gasoline blendstock for December fell less than 1¢ to remain at a rounded $1.69/gal.
Brent crude oil for January dropped $1.04 to $72.13/bbl on London’s International Commodity Exchange. The February contract declined 94¢ to $72.16/bbl. The gas oil contract for November fell $4.50 on Nov. 6 to close at $677.50/tonne.
OPEC’s basket of crudes average for Nov. 6 was $70.88/bbl, down 57¢.
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.