US light, sweet crude oil dropped more than $1/bbl on the New York market Oct. 10 to settle above $51/bbl for November delivery while the Brent contract for December on the London market settled above $53/bbl after Russian President Vladimir Putin talked about oil production cuts.
In comments while attending an energy conference in Istanbul on Oct. 10, Putin said he supports a proposal by the Organization of Petroleum Exporting Countries to set new production limits. OPEC meets again Nov. 30 in Vienna.
Russia “stands ready to join common efforts to limit production” and believes that reduced production is “the only way to save the stability of the energy sector,” Putin said.
But Russia has had difficulty in the past on following through on vowed production cuts. Analysts said Russia failed to follow through on promises to cut production after terrorist attacks on Sept. 11, 2001, and the 2008 global financial crisis.
Separately, the International Energy Agency said world oil supply reached 97.2 million b/d in September, up 600,000 b/d compared with August. Most of the gain came from Russia, which boosted output by 400,000 b/d to 11.1 million b/d.
The natural gas contract for November rose 8¢ to a rounded $3.27/MMbtu. On the spot market, the Henry Hub gas price climbed 18¢ to $3.14/MMbtu.
Heating oil for November rose 3¢ to a rounded $1.61/gal. The price for reformulated gasoline stock for oxygenates blending for November climbed 1.5¢ to a rounded $1.50/gal.
The December Brent crude contract on London’s ICE gained $1.21 to settle at $53.14/bbl, and the January contract rose $1.22 to settle at $53.71/bbl. The October gas oil contract settled at $476/tonne, up $8.75.
The average price for OPEC’s basket of benchmark crudes on Oct. 10 was $48.31/bbl, down 28¢.
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