Sign in Subscribe
Petroleum

Crude Oil Prices Plummet on Lack of News and Ongoing Downtrend

Strategic Insights

— 1 min read

The New York Mercantile Exchange's (Nymex) crude oil contract for Nov 1995 deliveries experienced a significant drop in price, falling by 14 cents per barrel to $17.33/bbl on Sep 25, 1995. This decline was driven by a lack of news from the International Energy Conference in Venezuela and a continuation of the downward trend that began a week earlier. The market's reaction was characterized by light trading and a near-term downtrend in crude and products contracts.

Key Takeaways:

  • The November crude contract on Nymex settled down 14 cents at $17.33/bbl, just one penny above the daily low of $17.32, after showing signs of life on Monday.
  • The market was reacting to the lack of news from the International Energy Conference in Venezuela, which had caused a downward trend in crude prices to continue.
  • The October heating oil contract lost 0.62 cents to close at 38.23 cents gal, while the October gasoline contract fell by 0.22 cents to 53.79 cents/gal.
  • Traders were anticipating the release of midweek inventory reports, which were expected to provide guidance on supply levels.
  • Crude's losses confirmed the contract's near-term downtrend, according to Tim Evans, an analyst with Pegasus Econometric Group in New York.
  • Monday's 22 cents rally in crude prices was seen as a minor correction in the recent slide, suggesting a further consolidation in the short term.
  • Crude is expected to test support at $16.64/bbl, a level not seen since July, after corrections.
  • Heating oil traders were "cringing in anticipation" of this week's inventory reports, following last week's 4.6 million bbl build in distillate stocks.

Statistics:

  • Crude oil price dropped by 14 cents per barrel to $17.33/bbl on Sep 25, 1995.
  • The October heating oil contract lost 0.62 cents to close at 38.23 cents gal.
  • The October gasoline contract fell by 0.22 cents to 53.79 cents/gal.
  • Crude's losses confirmed the contract's near-term downtrend, with a 14 cents drop on the day.
  • The market's reaction was driven by a lack of news from the International Energy Conference in Venezuela.

Sources:

  • WASHINGTON -- (no publication date mentioned in the original text)
  • WASHINGTON -- (no publication date mentioned in the original text)
  • Tim Evans, an analyst with Pegasus Econometric Group in New York (no publication date mentioned in the original text)

Read more