MARKET WATCH: NYMEX crude oil price surge on US oil supply dip

Light, sweet crude oil contracts gained more than $2/bbl on the New York market Sept. 8 as did the Brent crude oil contracts on the London market after a massive drop was reported in US oil supplies.

The US Energy Information Administration reported a 14.5 million-bbl drop in oil supplies for the week ended Sept. 2. Crude oil prices on the New York market fell in early Sept. 9 trading.

The Petroleum Status Report showed a 30,000-b/d decline in US oil production for the week ended Sept. 2 to a total of 8.458 million b/d.

EIA said Alaska oil production fell 45,000 b/d for the week, but the Lower 48 production gained 15,000 b/d to help partially offset the total decline.

Regarding natural gas in underground storage across the Lower 48, EIA estimated levels at a rounded 3.44 tcf as of Sept. 2, up 36 bcf from the previous week.

The Gas Storage Report said the Sept. 2 level was 196 bcf higher than last year at this time and 306 bcf above the 5-year average of 3.13 tcf.

Raymond James & Associates analyst J. Marshall Adkins of Houston forecast the Dec. 31 US gas storage levels at close to 4 tcf.

“Next week could bring a meaningfully higher injection,” Adkins said. “Certain one-time items (tropical storm, holiday, weather, and lower LNG exports) could combine to bring a higher than recently seen injection.”

Energy prices

The October crude oil contract on the New York Mercantile Exchange surged up $2.12 on Sept. 8 to close at $47.62/bbl. The November contract climbed $2.11 to $48.26/bbl.

The natural gas contract for October rose 13¢ to at a rounded $2.81/MMbtu. On the spot market, the Henry Hub gas price was up 2¢ to $2.84/MMbtu.

Heating oil for October increased 5.6¢ to a rounded $1.48/gal. The price for reformulated gasoline stock for oxygenates blending gained 7¢ to a rounded $1.42/gal.

The November Brent crude contract on London’s ICE rose $2.01 to settle at $49.99/bbl and the December contract climbed $2.04 to settle at $50.43/bbl. The September gas oil contract settled at $427.75/tonne, up $17.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes on Sept. 8 was $44.61/bbl, up $1.43.

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 ...