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United Nations

Crude Market Extends Slump with 20% Price Drop

Strategic Insights

— 2 min read

The crude market has suffered a steep decline over the past two weeks, with prices plummeting 20% since the Wednesday preceding the Thanksgiving weekend in the US. Light, sweet January crude on the New York Mercantile Exchange (Nymex) ended at $28.44/bbl last week, down $3.58 from the previous week. Brent crude in London also saw significant movement, losing 91 cents on the day and $3.61 on the week to settle at $26.56/bbl.

Key Takeaways:

  • The crude market has experienced a 20% price drop since the Wednesday preceding the Thanksgiving weekend in the US, with light, sweet January crude on the Nymex down $6.96/bbl.
  • Brent crude in London lost 91 cents on the day and $3.61 on the week to settle at $26.56/bbl, with two-week losses totaling $6.56.
  • The market was initially expected to be affected by the Iraqi disruption, but the drop in prices was unexpected, given the anticipation of a supply disruption.
  • The lost exports from Iraq will not make up for the lost supplies, and the impact on the market of extra barrels released from the Strategic Petroleum Reserve will be partially countered.
  • Heating oil prices were affected by the spiraling crude contract and skyrocketing natural gas prices, with January heating oil ending down 2.66 cents on the week.
  • Gasoline followed crude with less resistance, giving up 3.01 cents on the day and 8.77 cents on the week to settle at 73.66 cents/gallon.

Statistics:

  • 20%: The price drop of light, sweet January crude on the Nymex since the Wednesday preceding the Thanksgiving weekend in the US.
  • $6.96/bbl: The decline of light, sweet January crude on the Nymex since the Wednesday preceding the Thanksgiving weekend in the US.
  • $3.58: The weekly decline of light, sweet January crude on the Nymex.
  • $28.44/bbl: The price of light, sweet January crude on the Nymex as of last week.
  • $26.56/bbl: The price of Brent crude in London as of last week.
  • $6.56: The two-week loss of Brent crude in London.

Sources:

  • "Nymex crude falls below $30/bbl" (no date or publication given)
  • Tim Evans at IFR Pegasus (no date or publication given)
  • "US energy industry headlines" (no date or publication given)
  • "OD, Dec. 5, p6" (no date or publication given)
  • "Somo reaches agreement with UN oil overseers" (no date or publication given)
  • "Spot prices in the US Gulf" (no date or publication given)

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