MARKET WATCH: NYMEX oil prices jump more than $1/bbl on lower crude inventory
The light, sweet crude oil prices for October and November each jumped by more than $1/bbl on the New York market Sept. 19 with the October contract settling above $71/bbl, which analysts attributed to lower-than-expected US crude oil supplies.
The US Energy Information Administration reported US crude oil inventories, excluding the Strategic Petroleum Reserve, decreased by 2.1 million bbl for the week ended Sept. 14 to 394.1 million bbl. The latest total puts US crude oil inventories about 3% below the 5-year average for this time of year, EIA’s Weekly Petroleum Status Report said.
The inventory drop marked the fifth consecutive weekly decline and the lowest total inventory level since February 2015.
“The withdrawal is mostly in line with what the market was expecting,” Warren Patterson, commodities strategist at ING Bank, told the Wall Street Journal.
US oil production for the week ended Sept. 14 gained 100,000 b/d to 11 million b/d.
The Organization of Petroleum Exporting Countries is hosting a meeting in Algiers this weekend to discuss whether major producers, both OPEC and non-OPEC, plan to raise production to fill the gap left by lower Iranian oil supply.
The US in early November will impose sanctions on Iranian oil exports, and US President Donald Trump has encouraged other countries to also stop buying Iranian crude.
Energy prices
The light, sweet crude contract for October delivery on the New York Mercantile Exchange gained $1.27 to $71.12/bbl on Sept. 19. The November contract jumped $1.18 to settle at $70.77/bbl.
The NYMEX natural gas price for October fell 2¢ to a rounded $2.91/MMbtu. The Henry Hub cash gas went the opposite direction, gaining 9¢ to settle at $3.06/MMbtu.
Ultralow-sulfur diesel for October rose 1¢ to a rounded $2.25/gal. The NYMEX reformulated gasoline blendstock for October gained 1.6¢ to $2.02/gal.
Brent crude oil for November climbed 37¢ to $79.40/bbl on London’s International Commodity Exchange. The December contract rose by 39¢ to $78.92/bbl. The gas oil contract for October was $688/tonne, up $3.
OPEC’s basket of crudes for Sept. 19 averaged $77.06/bbl, up 97¢.
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.