MARKET WATCH: NYMEX, Brent prices rally, top $32/bbl

Light, sweet crude oil prices soared by more than $2/bbl on the New York market Jan. 22, settling at $32.19 for March delivery while Brent crude oil prices climbed by nearly $3/bbl on the London market to settle at $32.18/bbl.

Analysts attributed the jump in US oil futures to a blizzard forecast for the East Coast. Meanwhile, cold weather swept across much of the Southeast, Mid-Atlantic, and Northwest. Dropping temperatures across much of the nation drove up heating oil prices by nearly 10¢/gal.

Both light, sweet crude and Brent crude contracts posted their biggest single-day percentage gains since August 2015. US oil futures were up 9% for the day while the Brent crude future price rose 10% Jan. 22 from the previous day. The gains came after oil prices tumbled more than 50% during the past 18 months.

Goldman Sachs Group Inc. said crude prices are at a price level that is apt to create “real fundamental change” in oil markets. Analysts Jeffrey Currie, Damien Courvalin, Michael Hinds, and Abhisek Banerjee wrote a note to clients saying industry adjustment is crucial.

“We continue to believe this transitional inflection phase is likely to last beyond first-half 2016 and will be characterized by a trendless market with substantial price volatility, potentially between the two stress points of $20/bbl and $40/bbl,” they said.

Energy prices

The March crude oil contract on the New York Mercantile Exchange gained $2.66 to settle at $32.19/bbl on Feb. 22,the the highest close for the front-month contract since Jan. 8. The March contract was up $2.68 to settle at $33.51/bbl.

The NYMEX natural gas contract for February edged up a fraction of a penny to remain at a rounded $2.14/MMbtu. The Henry Hub gas price held at $2.20/MMbtu on Jan. 22, unchanged from the previous trading day.

Heating oil for February delivery gained nearly 10¢ to a rounded $1/gal. The price for reformulated gasoline stock for oxygenates blending for February was up 5¢ to a rounded $1.08/gal.

The March ICE contract for Brent crude climbed $2.93 to settle at $32.18/bbl on Jan. 22, and the April contract rose $3.05 to $32.84/bbl. The ICE gas oil contract was $284/tonne on Jan. 22, up $25.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes for Jan. 22 was $25.50/bbl, up $2.61.

Contact Paula Dittrick at

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...