Oil Prices Rise Again
West Texas Intermediate (WTI) and Brent crude oil finished higher for the second consecutive day.
The WTI for November delivery added 57 cents Thursday, settling at $53.93 per barrel. The light crude marker traded within a range from $52.99 to $53.99.
December Brent moved closer to the psychologically important $60-mark, gaining 49 cents to end the day at $59.91 per barrel.
In addition to watching ongoing items influencing the oil market such as U.S./China trade and the broader global economic situation, traders also weighed a report that Saudi Aramco has postponed its planned November initial public offering (IPO). Citing an unnamed source, Bloomberg reported that Saudi Aramco wants to wait to kick off the IPO until it can provide investors more details on its quarterly earnings in the wake of the Sept. 14 attack on its vital Abqaiq oil processing facility.
Also, the U.S. Energy Information Administration (EIA) predicts record-setting oil production in the Gulf of Mexico (GOM) for 2018 through 2020. The agency reported that GOM production hit approximately 1.8 million barrels per day (bpd) last year and should reach 2 million bpd in 2020. Supporting the output growth are 12 new deepwater projects slated to go online this year and next.
The reformulated gasoline (RBOB) contract finished the day slightly lower. November RBOB lost less than one cent to settle at $1.62 per gallon.
Rounding out Thursday’s commodity price lineup is Henry Hub natural gas. November gas futures added 1.5 cents to settle at $2.32.
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