Crude Oil Prices Plummet Below $14/Bbl, Bearish Sentiment Persists in New York

Prices for crude oil plummeted on Monday, with the September light, sweet crude contract on the New York Mercantile Exchange (Nymex) closing down 51 cents at $13.70/bbl, while front-month North Sea Brent futures in London dove below $13/bbl to end the day down 53 cents at $12.56/bbl. Analysts attribute the decline to a lack of significant market-moving news, with mixed weekend updates from OPEC members on current and future production cuts canceling each other out.

Key Takeaways:

• The September light, sweet crude contract on Nymex closed down 51 cents at $13.70/bbl on Monday.
• Front-month North Sea Brent futures in London ended the day down 53 cents at $12.56/bbl.
• Refinery cuts have become an issue in the past week as refining margins have shriveled.
• Gasoline prices still ended down 0.49 cents at 41.88 cents/gallon despite a slight recovery due to Tosco Corp.'s 10% cut in Northeast refinery output.
• September heating oil closed at 35.81 cents/gallon, down 0.92 cents.
• Natural gas spot prices began the week falling, with prices slipping 3 cents-5 cents in South Texas and 1 cents-2 cents in Louisiana.

Statistics:

• Crude oil prices fell below $14/bbl on Monday.
• The September light, sweet crude contract on Nymex closed down 51 cents at $13.70/bbl.
• Front-month North Sea Brent futures in London ended the day down 53 cents at $12.56/bbl.
• Gasoline prices fell 0.49 cents to 41.88 cents/gallon.
• Refinery checks have become a concern as refining margins have shriveled in the past week.
• September heating oil prices closed at 35.81 cents/gallon, down 0.92 cents.
• Natural gas spot prices fell 3 cents-5 cents in South Texas and 1 cents-2 cents in Louisiana.

Sources:

• "The Oil Daily" (TOD), August 3, 1998, p. 5.
• Refco Inc. ( Victor Yu, vice president).
• NYMEX (New York Mercantile Exchange).
• OPEC (Organization of the Petroleum Exporting Countries).
• Tosco Corp.