Crude oil futures prices fell slightly On the New York market. This happened as a government report showed the largest weekly crude oil supply gain in more than 3 months. The trend was followed in the Futures market as it declined as much as 0.6 percent in New York, trimming a third weekly advance.
A lower trend was seen on the New York Mercantile Exchange wherein the March crude contract settled 5¢ lower and closed at $97.36/bbl on Jan. 29. There was a decline in the April contract where it settled at $96.88/bbl. On the other hand, heating oil for February delivery rose 5.98¢ to a rounded $3.18/gal.
Like heating oil, there was a little gain for reformulated gasoline stock for oxygenate blending for February delivery as it saw a growth of 3.3¢ to a rounded $2.66/gal.
Similarly, the February natural gas contract on NYMEX also went up by 52.4¢ to a rounded $5.56/MMbtu. A similar trend was seen in London where the March ICE contract for Brent crude delivery gained 44¢, closing at $107.85/bbl.
Brent also saw a little gain in the April contract which climbed 38¢ to $107.24/bbl. A similar trend was seen in the ICE gas oil contract for February which went up $6.25 to $923.75/tonne. However, the OPEC (Organizational of Petroleum Exporting Countries) said that its basket of 12 benchmark crudes faced challenge as it declined 10¢ to $104.57/bbl on Jan. 29.
2014 Would be Slow for Crude Oil
According to various estimates the year 2014 which is expected to do better this year for crude oil may not be on the expected lines. This year will see record oil production as Iraq will be bringing up additional million barrels of oil. Libya will add 500,000 million barrels of oil and join the global supply line.
Also, there would be an increase in oil production from US and Canada. Mexico is expected to come up with a boost in oil production thanks to Mexican Energy Reform 2014. The increased oil supply will definitely hit oil market.
A new development has been that in the last month of the year 2014, the Iran nuclear deal gave a lot of impetus to the country to bring its oil for the global consumers. OPEC has already declined to reduce the oil production from the current limit as it feels the current oil prices are not a worry.
To contact the reporter of this story: Jonathan Millet at email@example.com