Friday Fuel Watch: Oil prices back to October levels

The WTI crude oil price has averaged USD61.3 per barrel for the year, but has spent the last months close to USD80 per barrel. However, the weaker US dollar and lower demand, combined with larger than expected US stockpiles, continue to place downward pressure on crude prices.

Mexico has also put a USD1.7 billion hedge option for much of its 2010 oil exports at USD57 per barrel, 20% lower than the current market. The Mexican government has projected that oil will drop to an average of USD59 per barrel in 2010.

Oil prices approach USD70 per barrel

Oil prices for the week to 08-Dec-2009 fell 7.4% from the previous week, retreating more than USD5 per barrel to USD72.59. Since rising above USD81 in mid-Oct-2009, oil prices have fallen by greater than 10%.

WTI spot price: Jan-2009 to Dec-2009

Source: Centre for Asia Pacific Aviation & US Energy Information Administration

Jet fuel falls lagging

Jet fuel were down in all markets in the past week, reversing the gains of the previous week. New York Harbour and US Gulf Cost prices were down 4.5% and 2.2% respectively, just dropping below USD200 cents per gallon. Los Angeles prices fell 3.8%, staying above USD200 cents per barrel. Amsterdam-Rotterdam-Antwerp exchange prices fell 5% while Singapore prices were down 2.5%.

Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore: 05-May-09 to 08-Dec-09

Source: Centre for Asia Pacific Aviation & US Energy Information Administration

Major oil market movements, USD cents per gallon

Source: Centre for Asia Pacific Aviation & US Energy Information Administration
*USD per barrel