Crude oil futures prices rebounded by more than $1/bbl on New York market Nov. 5, pulling back above $78/bbl for contracts for both December and January 2015 deliveries while the Brent contract for December delivery gained modestly although it still hovered below $83/bbl.
But oil prices tumbled again in early Nov. 6 trading after the Organization of Petroleum Exporting Countries released its annual world oil outlook saying it expects future demand for OPEC oil to be lower than 2013 demand.
OPEC said demand for its crude would fall to 28.2 million b/d by Dec. 31, 2017, and the outlook forecast production gains from non-OPEC countries.
Demand for OPEC crude likely will pick up again in 2018, but will still be lower than the 2013 demand level, OPEC said. The cartel forecast demand for its crude to reach 29.2 million b/d by 2018 compared with 30.3 million b/d in 2013.
European Central Bank Pres. Mario Draghi on Nov. 6 said ECB left interest rates unchanged, which prompted analysts to suggest that a sluggish European economy could limit oil demand.
Separately, analysts noted Brent crude oil received support from news reports of attacks on Libya’s western oil fields by militia groups.
Regarding US natural gas levels in underground storage across the Lower 48, the Energy Information Administration said Nov. 5 that it estimated working gas in storage at 3.57 tcf as of Oct. 31, which represented a net increase of 91 bcf from the previous week.
Stocks were 238 bcf less than last year at this time and 261 bcf below the 5-year average of 3.83 tcf, EIA said in its weekly gas storage report.
The natural gas contract for December gained 6.5¢ to a rounded $4.19/MMbtu. The cash gas price at Henry Hub, La., was $3.80/MMbtu, up 14¢.
Heating oil for December delivery was down a fraction of a penny to remain at a rounded $2.44/gal. Reformulated gasoline stock for oxygenate blending for December delivery gained nearly a penny to a rounded $2.09/gal.
The December ICE contract for Brent crude oil was up 13¢ to $82.95/bbl. The January 2015 contract gained 14¢ to $83.52/bbl. The ICE gas oil contract for November rose $3.25, settling at $729.50/tonne.
The average price for OPEC’s basket of 12 benchmark crudes was $78.11/bbl on Nov. 5, down 56¢ from the previous day.
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