NYMEX oil dips as US inches closer to historic production levels
Light, sweet crude oil for March delivery on the New York market tumbled to settle below US$65/bbl on the 30th January as US production inches closer to historic levels.
Earlier this year, the US Energy Information Administration said it expects US production climb above ten million b/d in 2018, pushing the US past Saudi Arabia in terms of production.
EIA expects total US crude oil production to average 10.3 million b/d in 2018, up 10% from 2017. If achieved, this would be the highest annual average US oil production on record, surpassing the previous record of 9.6 million b/d set in 1970.
Energy prices
The March light, sweet crude contract on the New York Mercantile Exchange fell US$1.06 on the 30th January to settle at US$64.50/bbl. The April contract was down US$1.04 to US$64.35/bbl.
The NYMEX natural gas price for March settled at a rounded US$3.20/MMbtu. The Henry Hub cash gas price rose 4¢ to US$3.60/MMbtu.
Ultralow-sulphur diesel for February fell 6¢ to a rounded US$2.01/gal. Rounded, the NYMEX reformulated gasoline blendstock for February hit US$1.90/gal.
On London’s ICE for March Brent dropped 44¢ to US$69.02/bbl.
The April contract was down 47¢ to US$68.73/bbl.
The gas oil contract for February reached US$611.50/tonne.
The Organisation of Petroleum Exporting Countries’ basket of crudes was US$66.60/bbl on the 30th January, down US$1.