MARKET WATCH: NYMEX, Brent oil prices fall slightly pending full US sanctions on Iran
Light, sweet crude oil prices for November delivery fell by less than a dime on the London market Sept. 17 to hold above $68/bbl while Brent crude oil prices on the London market also fell slightly, settling above $78/bbl.
US oil futures opened Sept. 17 trading with a gain attributed to a weaker US dollar, but oil prices changed direction by closing. Investors apparently remain concerned about world oil supply. US sanctions are scheduled to be imposed on Iran’s oil exports in early November.
Some other US economic sanctions already were imposed earlier this year. In May, US President Donald Trump announced a US exit from an international agreement that lifted sanctions by an alliance of countries in exchange for Iran’s cooperation on its nuclear program.
China and India already are reducing Iranian oil imports. Total exports of Iranian crude fell by 280,000 b/d in August compared with July. The August exports were estimated at 1.9 million b/d, the International Energy Agency recently said.
Traders also await news from a meeting in Algiers Sept. 23 between key members of the Organization of Petroleum Exporting Countries and Russia. Production levels are expected to be discussed at that meeting, particularly how producers can respond so that an already-tight market will make up for the loss of Iranian supply.
Energy prices
The light, sweet crude contract for October delivery on the New York Mercantile Exchange dropped 8¢ to $68.91/bbl on Sept. 17. The November contract decreased 9¢ to settle at $68.68/bbl.
The NYMEX natural gas price for October gained nearly 5¢ to a rounded $2.81/MMbtu. The Henry Hub cash gas was $2.90/MMbtu, up 5¢.
Ultralow-sulfur diesel for October edged down less than 1¢ to remain at a rounded $2.21/gal. The NYMEX reformulated gasoline blendstock for October gained less than a penny to a rounded $1.98/gal.
Brent crude oil for November declined 4¢ to $78.05/bbl on London’s International Commodity Exchange. The December contract fell 2¢ to $77.59/bbl. The gas oil contract for October was $681.50/tonne, up $1.50.
OPEC’s basket of crudes for Sept. 17 averaged $76.19/bbl, up 14¢.
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.