MARKET WATCH: Oil prices drop on surprise build in US oil inventory
Light, sweet oil prices settled under $70/bbl, down more than $2 on the New York market Oct. 17 compared with the previous day after a government report showed an unexpected rise in the US crude oil inventory, excluding the Strategic Petroleum Reserve.
The front-month Brent crude fell below the $80/bbl on the London market during Oct. 18 trading after settling just above that threshold on Oct. 17.
The US Energy Information Administration said crude oil inventories increased by 6.5 million bbl for the week ended Oct. 12. At 416.4 million bbl, US crude oil inventories are about 2% above the 5-year average for this time of year, the report showed (OGJ Online, Oct. 17, 2018).
Regarding oil production, the Strategic Petroleum Report said US oil production was 10.9 million b/d for the week ended Oct. 12, down 300,000 b/d from the week ended Oct. 5.
Energy prices
The light, sweet crude contract for November delivery on the New York Mercantile Exchange fell $2.17 to $69.75/bbl on Oct. 17. The December contract dropped $2.06 to settle at $69.70/bbl.
The NYMEX natural gas price for November gained 8¢ to $3.32/MMbtu.
Ultralow-sulfur diesel for November fell nearly 3¢ to a rounded $2.31/gal. The NYMEX reformulated gasoline blendstock for November dropped nearly 6¢ to $1.92/gal.
Brent crude oil for December declined $1.36 to $80.05/bbl on London’s International Commodity Exchange. The January contract fell $1.41 to $79.63/bbl. The gas oil contract for November fell $4.25 on Oct. 17 to close at $711.25/tonne.
The Organization of Petroleum Exporting Countries’ basket of crudes for Oct. 17 averaged $79.50/bbl, up 48¢.
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.