MARKET WATCH: Oil prices volatile on Russia, Iran comments

Light, sweet crude oil prices on the New York market for January delivery fell $1.90 on Nov. 25 to settle at about $46/bbl, ending the week down by 30¢. The US benchmark crude price has dropped in 4 of the last 5 weeks. Prices continued the downward trend in early Nov. 28 trading.

Brent crude oil prices on the London market for the January contract fell $1.76 on Nov. 25 to settle near $47.25/bbl. Brent managed to gain 38¢ for the week because of gains made earlier.

Market participants continue to closely monitor oil-supply comments made from members of the Organization of Petroleum Exporting Countries in advance of the cartel’s Nov. 30 meeting in Vienna.

In September, OPEC proposed capping production at 32.5-33 million b/d. The cartel in October produced a record 33.64 million b/d (OGJ Online, Nov. 11, 2016).

The Wall Street Journal reported Nov. 24 that OPEC wants Russia and other non-OPEC producers to cut production by 500,000-600,000 b/d.

On Nov. 25, OPEC officials said Saudi leaders likely would postpone a Nov. 28 meeting with non-OPEC producers pending an OPEC agreement that Saudi officials could take to non-OPEC countries. The WSJ reported Saudi Arabia supports efforts to cut OPEC output to 32.5 million b/d.

Iran said Nov. 26 that it was negotiating an exemption with OPEC from cutting its production, the third-highest in the 14-nation OPEC cartel behind Saudi Arabia and Iraq.

Russia Energy Minister Alexander Novak said on Nov. 24 that Moscow officials were talking about a production freeze.

Energy prices

The January crude oil contract on the New York Mercantile Exchange dropped $1.90 on Nov. 25 to close at $46.06/bbl. The February contract tumbled $1.86 to $47/bbl.

The natural gas contract for December climbed nearly 6¢ to a rounded $3.08/MMbtu. The Henry Hub spot market for natural gas was closed Nov. 25.

Heating oil for December fell 4.7¢ to a rounded $1.47/gal. Reformulated gasoline stock for oxygenate blending for December dropped nearly 5¢ to a rounded $1.37/gal.

The Brent crude contract for January on London’s ICE dropped $1.76 to $47.24/bbl. The February contract fell $1.78 to $48.24/bbl. The December gas oil contract gained 50¢ to $445.75/tonne.

The average price for OPEC’s basket of benchmark crudes on Nov. 25 was down 34¢ to $45.22/bbl.

Contact Paula Dittrick at paulad@ogjonline.com.

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

Whitepapers

Storm Impact Analytics for Utilities

In recent years, increasingly volatile and extreme weather events have significantly impacted the...

Reach New Heights: Six Best Practices in Planning and Scheduling

These 6 best practices have created millions of dollars in value for many global companies. Learn...

Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...