MARKET WATCH: Oil prices fall as demand growth projected to slow

Crude oil prices on the New York and London markets fell by more than $1/bbl on Nov. 12, reaching their lowest level since the end of August.

The International Energy Agency said Nov. 13 that world oil demand growth will slow to 1.2 million bbl in 2016 after reaching 1.8 million b/d in 2015, a 5-year high. IEA attributed slowing world oil demand to the economies of some countries, especially China.

Analyst on Nov. 13 awaited the weekly release of the rig count from Baker Hughes Inc., which has been on the decline for weeks.

Energy prices

The December crude oil contract on the New York Mercantile Exchange fell $1.18 on Nov. 12 to $41.75/bbl. The January crude oil contract fell $1.17 to $43.03/bbl.

The NYMEX natural gas contract for December dropped a fraction of a penny to remain at a rounded $2.26/MMbtu. The Henry Hub gas price was down 10¢ to $2.01/MMbtu.

Heating oil for December delivery lost 4.1¢ to a rounded $1.41/gal. The price for reformulated gasoline stock for oxygenates blending for December dropped 5.6¢ to a rounded $1.27/gal.

The December ICE contract for Brent crude declined $1.75 to $44.06/bbl. The January contract declined $1.42 to $45.19/bbl. The ICE gas oil contract for December closed at $431.25/tonne.

The average price for the OPEC basket of 12 benchmark crudes for Nov. 12 was $40.21/bbl, down $1.32.

Contact Paula Dittrick at paulad@ogjonline.com.

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

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