Russia Export Cuts Lift Crude Oil Prices

Article excerpt

Oil prices settled mostly higher on Tuesday after Russia said it would temporarily cut oil exports to meet domestic winter demand.

The announcement gave a push to prices that have been hammered in the past week since the Organization of Petroleum Exporting Countries was unable to find a way to cut overproduction.

Spot prices were raised by 25 cents per barrel Tuesday by Kerr-McGee Refining Corp., Phillips 66 Co. Total Petroleum Inc. and Koch Oil Co. All four companies posted Oklahoma Sweet and West Texas Intermediate at $13.75 per barrel.

Oklahoma Sour was posted at $12.15 by Kerr-McGee and at $11.90 by Total and Koch. Kerr-McGee also posted Central Oklahoma Sweet at $14.

The increase by the four companies Tuesday came after a reduction of $1.25 on Monday. That reduction cut prices to the lowest price paid for Oklahoma Sweet by Kerr-McGee since October 1988. The record low price paid for Oklahoma Sweet by Kerr-McGee was $11 in July 1986.

Sun Co., which only cut prices by $1 on Monday, did not announce a price change on Tuesday.

Light sweet crude oil for delivery in January settled at $15.43 per barrel, up 12 cents at the New York Mercantile Exchange on Tuesday. Crude has neared five-year lows this week, falling from $17.10 last Monday.

In London, North Sea Brent Blend crude oil for delivery in January settled at $14.52 per barrel, up 30 cents, at the International Petroleum Exchange.

Natural gas prices were lower on the New York Mercantile Exchange, with contracts for delivery in January settling at $2.243 per 1,000 cubic feet, down 3.2 cents.

It was a volatile day for oil prices, ranging from a high of $15. …

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