MARKET WATCH: NYMEX oil price jumps more than $2/bbl

Light, sweet crude oil prices for October jumped more than $2/bbl Sept. 16 on the New York market after a government report showed lower oil and product inventories than analysts had expected.

The Energy Information Administration estimated US commercial crude oil reserves, excluding the Strategic Petroleum Reserve, decreased 2.1 million bbl for the week ended Sept. 11 compared with the previous week (OGJ Online, Sept. 16, 2015).

Oil prices were dropping again in early Sept. 17 trading as the market awaited news from the Federal Reserve policy meeting. The Fed was considering whether to announce the first US interest rate hike in more than 9 years.

A rate hike could boost the dollar, potentially weakening short-term oil demand. Oil trades in US currency on world markets.

Regarding natural gas in underground storage across the Lower 48, EIA estimated levels at 3.3 tcf as of Sept. 11, which was a net increase of 73 bcf from the previous week.

The Gas Storage Report showed stocks 456 bcf higher than last year at this time and 125 bcf above the 5-year average of 3.2 tcf.

Energy prices

The October crude oil contract on the New York Mercantile Exchange jumped $2.56 to $47.15/bbl on Sept. 16 while the November crude oil contract was up $2.51 to $47.51/bbl.

The natural gas contract for October declined nearly 7¢ to a rounded $2.66/MMbtu. The Henry Hub, La., gas price was down 5¢ to $2.68/MMbtu.

Heating oil for October delivery rose 4¢ to $1.54/gal. The price for reformulated gasoline stock for oxygenates blending for October was up nearly 5¢ to a rounded $1.38/gal.

The November ICE contract for Brent crude escalated by $2 to $49.75/bbl, and the December contract rose $1.94 to $50.52/bbl. The ICE gas oil contract for October was up $20 to $477/tonne.

The average price for the OPEC basket of 12 benchmark crudes rose $1.44 to $44.57/bbl on Sept. 16.

Contact Paula Dittrick at paulad@ogjonline.com.

*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.

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