Light, sweet crude oil rallied to settle above $57/bbl on the New York market Nov. 20 while Brent crude oil for January gained nearly $1.50 to settle above $62/bbl on the London market.
The markets reacted, in part, to a lower than expected US supplies report.
The US Energy Information Administration reported US crude supplies, excluding the Strategic Petroleum Reserve, increased by 1.4 million bbl for the week ended Nov. 15 (OGJ Online, Nov. 20, 2019). The EIA’s number is well below the 6 million bbl increase reported by the American Petroleum Institute on Nov. 19.
Increasing tensions in the Middle East added to market reaction as violent demonstrations in Iran have reportedly left numerous dead. On Nov. 20, Iranian President Hassan Rouhani declared victory over what he called foreign enemies, state TV reported.
Meanwhile, there are news reports of a Saudi Arabian coalition fighter plane shot down by Houthi forces in Yemen. “The Saudi-led intervention in Yemen has been going on for four years,” said OANDA senior market analyst Edward Moya in a report, noting the intervention is another reminder of various geopolitical risks in the region.
Energy prices
Light, sweet crude oil on the New York Mercantile Exchange for December rose $1.90 to $57.11/bbl, while January delivery rose $1.66 to $57.01/bbl. The February contract increased $1.62 to settle at $56.88/bbl.
NYMEX natural gas for December was up 49¢ to settle at a rounded $2.56/MMbtu.
Ultralow-sulfur diesel for December increased just above 3¢ to $1.89/gal. The NYMEX reformulated gasoline blendstock for December gained 5¢ to a rounded $1.66/gal.
Brent crude for January added $1.49 to $62.40/bbl. The February price increased $1.45 to settle at $61.47/bbl.
The gas oil contract for December gained $6.25 to $573.75/tonne on Nob. 20.
The average for OPEC’s basket of crudes was down 29¢ to $62.22/bbl on Nov. 20.
