MARKET WATCH: Oil price rally pauses given US stock market volatility
Light, sweet oil prices climbed to settle slightly higher on Oct. 16 but fell Oct. 17 in early trading on the New York market, which analysts attributed to broader US equity market jitters. Crude prices had climbed to multiyear highs recently on oil supply concerns worldwide.
But stock market volatility carried over to the oil market on Oct. 17. Ole Hansen, Saxo Bank head of commodity strategy, said, “There’s been a recent correlation between stocks and oil because the sentiment hitting equities markets has been reflecting concerns over the outlook for global growth.”
Preliminary statistics released from the American Petroleum Institute on Oct. 16 showed an unexpected decrease in US crude oil supplies of 2.1 million bbl for the week ended Oct. 12.
Analysts awaited the more-closely watched inventory report from the US Energy Information Administration scheduled to be released Oct. 17.
Energy prices
The light, sweet crude contract for November delivery on the New York Mercantile Exchange gained 14¢ to $71.92/bbl on Oct. 16. The December contract gained 15¢ to settle at $71.76/bbl.
The NYMEX natural gas price for November fell a fraction of a penny to remain at a rounded $3.24/MMbtu.
Ultralow-sulfur diesel for November added 1¢ to a rounded $2.34/gal. The NYMEX reformulated gasoline blendstock for November rose 3¢ to $1.97/gal.
Brent crude oil for December increased 63¢ to $81.41/bbl on London’s International Commodity Exchange. The January contract gained 61¢ to $81.04/bbl. The gas oil contract for November fell 25¢ on Oct. 16 to close at $715.50/tonne.
The Organization of Petroleum Exporting Countries’ basket of crudes for Oct. 16 averaged $79.02/bbl, down 29¢.
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.