Crude oil prices fell more than $1/bbl on both the New York and London markets Sept. 28, which analysts and traders largely attributed to weakness in equities and commodities markets. Meanwhile, ample world oil supplies still exist even though US production has started to decline.
“We think that the next key milestones in the decline of US crude oil output are about to be passed…when output falls below 9 million b/d, and when year-on-year declines commence,” said Paul Horsnell, head of commodities research at Standard Chartered Bank.
“Our forecast is that both events will happen in October,” he said. The Energy Information Administration reports US oil production has started to fall following April’s peak of 9.61 million b/d.
The natural gas contract for October edged down by a fraction of a penny to remand at $2.56/MMbtu. The Henry Hub, La., gas price gained 9¢ to $2.63/MMbtu.
Heating oil for October delivery declined by 4.5¢ to a rounded $1.47/gal. The price for reformulated gasoline stock for oxygenates blending for October was down nearly 5¢ to a rounded $1.35/gal.
The November ICE contract for Brent crude dipped $1.26 to $47.34/bbl, and the December contract dropped $1.26 to settle at $48.01/bbl. ICE gas oil for October settled at $456.50/tonne.
The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes was $43.54/bbl on Sept. 28, down 22¢ from the previous day.
Contact Paula Dittrick at firstname.lastname@example.org.
*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.