Oil Prices Edge Downward
West Texas Intermediate (WTI) and Brent crude oil futures edged slightly downward during Monday’s trading.
The November WTI shed six cents Monday to settle at $52.75 per barrel. The contract traded within a range from $52.59 to $54.06.
Brent crude for December deliver posted a more modest two-cent loss, settling at $58.35 per barrel.
Like crude oil, the price of reformulated gasoline (RBOB) moved slightly downward during early-week trading. November RBOB fell less than one cent to end the day at $1.57 per gallon.
Among the commodities that Rigzone tracks, Henry Hub natural gas exhibited the strongest movement Monday. November gas futures lost five cents to settle at $2.30. Although the Henry Hub price had been on the ascent late last week, there are informal signs that a demand uptick could be on the horizon, Tom McNulty, Houston-based managing director with Great American Group, told Rigzone.
“We don’t talk about natural gas enough,” commented McNulty. “It’s down about two percent today, and flaring is reaching all-time highs in the Bakken and in the Permian. The U.S. is a natural gas titan.”
McNulty shared an anecdote from one of his sources suggesting that more U.S. associated gas could find a home as liquefied natural gas (LNG) given the global shipping industry’s rush to comply with stricter International Maritime Organization (IMO) marine fuel regulations that go into effect next year.
“One of my contacts in South Texas was here this morning and indicated that he is seeing more and more ships undergoing conversions to take LNG for fuel,” recalled McNulty. “This could be a great development, would soak up some of the excess natural gas we have and help to make more vessels IMO 2020-ready.”
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