Light, sweet crude oil prices for October dropped more than $1/bbl on the New York market Sept. 11 after Goldman Sachs Group Inc. analysts said the benchmark US oil price might drop to $20/bbl before an oversupply of world oil inventories can be cleared.
The investment banker actually has forecast higher oil prices than that, but it issued a report saying $20/bbl was possible.
In its report, Goldman Sachs suggested light, sweet oil prices could average $40/bbl for the fourth quarter and first quarter of 2016, which could be low enough to shrink the global crude oil supply.
Regarding natural gas in underground storage across the Lower 48, the US Energy Information Administration estimated working gas in storage at 3.26 tcf as of Sept. 4.
That represented a net increase of 68 bcf from the previous week. Stocks were 473 bcf higher than last year at this time and 127 bcf above the 5-year average of 3.13 tcf, the Gas Storage Report said. It was released on Sept. 11, one day later than normal because of the Sept. 7 Labor Day holiday in the US.
The natural gas contract for October rose 1¢ on Sept. 11 to a rounded $2.69/MMbtu. The Henry Hub, La., gas price was down 5¢ to $2.66/MMbtu.
Heating oil for October delivery declined nearly 2.5¢ to a rounded $1.55/gal. The price for reformulated gasoline stock for oxygenates blending for October was down nearly 2.4¢ to a rounded $1.37/gal.
The October ICE contract for Brent crude decreased 75¢ to $48.14/bbl, and the November contract was down 81¢ to $49.04/bbl. The ICE gas oil contract for October was down $4.25 to $472.75/tonne.
The average price for the OPEC basket of 12 benchmark crudes dropped 19¢ to $44.64/bbl on Sept. 11.
Contact Paula Dittrick at email@example.com.
*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.