Oil prices fell on Friday as U.S. Gulf of Mexico crude production resumed following Hurricane Francine and rising data showed a weekly rise in U.S. rig count. Brent crude futures settled at $71.61 a barrel, down 36 cents, or 0.5%. U.S. West Texas Intermediate crude (WTI) settled at $68.65 a barrel, down 32 cents, or 0.5%. As U.S. Gulf Coast production and refining activity resumes, investors have opted to offload oil contracts going into the weekend, analysts said.
For the week, Brent logged an increase of about 0.8% since the close of last Friday’s session, while WTI registered a roughly 1.4% gain. Crude prices also took a hit from the U.S. rig count from energy services group Baker Hughes, which reported the biggest weekly rise in oil and natural gas rig in a year.
Crude oil rigs rose by five to 488 last week. Both the Organization of the Petroleum Exporting Countries and the International Energy Agency lowered their demand growth forecasts last week, citing economic struggles in China, the world’s largest oil importer. U.S. oil stockpiles also rose across the board last week as crude imports grew and exports dipped, while fuel demand weakened, the Energy Information Administration said on Wednesday.
Asian spot LNG prices down on muted demand
Asian spot liquefied natural gas (LNG) prices fell last week amid limited demand for November deliveries and as supply concerns related to Hurricane Francine’s impact on U.S. LNG facilities eased. The average LNG price for October delivery into north-east Asia was at $13.20 per million British thermal units (mmBtu), industry sources estimated, down from $13.40 per mmBtu last week. In Europe, Dutch and British wholesale gas prices were little changed on Friday morning as supply risks eased due to the U.S. Hurricane Francine weakening and amid forecasts for warmer weather.
The market remains in a comfortable position, with high underground gas storage levels ahead of winter and no significant extensions to ongoing Norwegian maintenance. For the week, the benchmark front-month contract for Dutch TTF hub edged down by 1.7% to $11.61 per mmBtu.
In the U.S., natural gas futures fell on Friday, as traders took profits after prices rose to a two-month high early, supported by higher demand forecasts and a drop in output in recent days. For the week, the front-month gas futures for October delivery rose by 1.3%, to settle at $2.31 per mmBtu, rising for the third consecutive week.
— By the Al-Attiyah Foundation