MARKET WATCH: NYMEX oil price hovers around $47/bbl

The light, sweet crude oil price for October delivery gained modestly to settle above $47/bbl on the New York market Aug. 25. US futures prices have risen in 9 of the last 11 trading sessions.

Iran’s Oil Minister Bijan Zanganeh told the oil ministry news agency Shana that he will attend an informal gathering to discuss tightening oil output with other members of the Organization of Petroleum Exporting Countries.

An informal OPEC meeting is planned on the sidelines of another energy conference in Algeria in September. The next formal OPEC meeting is scheduled for November.

Shortly before trading closed in New York on Aug. 25, Reuters reported that Saudi Energy Minister Khalid al-Falih said in an interview that he does not believe any significant intervention in the oil market is necessary.

Meanwhile, the US natural gas contract for September delivery settled higher Aug. 25 for a fourth consecutive day. Analysts said warm weather supported demand for gas-generated electricity to run air conditioners.

US market participants awaited any clues on interest rates from a Jackson Hole Economic Policy Symposium in Wyoming. Federal Reserve Chair Janet Yellen was scheduled Aug. 26 to give a speech from the symposium. The question is whether the Fed will raise interest rates in September.

Energy prices

The NYMEX crude oil contract for October gained 56¢ to close at $47.33/bbl on Aug. 25. The October contract was up 55¢ to $48.03/bbl.

The natural gas contract for September climbed 5¢ to a rounded $2.85/MMbtu. On the spot market, the Henry Hub gas price gained 9¢ to $2.86/MMbtu.

Heating oil for September rose 1¢ to a rounded $1.51/gal. The price for reformulated gasoline stock for oxygenates blending for September edged up less than a penny to remain at a rounded $1.51/gal.

The Brent crude contract for October on London’s ICE gained 62¢ to settle at $49.67/bbl. The contract for November was up 57¢ to $49.92/bbl. The September gas oil contract settled at $437.25/tonne on Aug. 25, up $5.25.

The average price for OPEC’s basket of 12 benchmark crudes was $45.28/bbl on Aug. 25, up 3¢.

Contact Paula Dittrick at paulad@ogjonline.com.

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