MARKET WATCH: Crude oil futures up on Russia-Ukraine uncertainty

Crude oil futures prices climbed on the New York and London markets on May 12 upon concerns that additional Western sanctions against Russia could hinder the volume of Russia’s oil exports. Crude markets have been volatile since Ukraine’s Crimea region annexed to Russia earlier this year.

European Union representatives met to discuss strengthening sanctions again Ukrainian and Russian companies and individuals in response to the Russia-Ukraine conflict. Meanwhile, Ukraine’s presidential election is scheduled for May 25.

On May 11, pro-Russian separatists in eastern Ukraine said a majority of people voted for independence from Ukraine. Western leaders called the secession referendum illegitimate, and Russian officials said they respected the vote.

The Organization of the Petroleum Exporting Countries could cover any shortfall resulting from possible disruption of Russia’s oil exports, Saudi Arabia’s Minister of Petroleum and Mineral Resources Ali al-Naimi said.

Saudi Arabia already has played a key role in cushioning against supply disruptions from Libya, Nigeria, Iraq, and South Sudan during the last 2 years, he told reporters May 12 on the sidelines of a conference in Seoul.

“We are willing to supply any shortage which may arise,” he said, adding that Saudi Arabia’s currently produces about 9.6 million b/d while it has the capacity to produce 12.5 million b/d.

Energy prices

The New York Mercantile Exchange June crude oil contract price increased 60¢ on May 12, closing at $100.59/bbl. The July contract climbed 63¢ to settle at $99.94/bbl.

The June natural gas contract lost 9.7¢ to a rounded $4.43/MMbtu.

Heating oil for June delivery gained 1.17¢ to a rounded $2.92/gal. Reformulated gasoline stock for oxygenate blending for June delivery rose 1.86¢ to a rounded $2.91/gal.

In London, the June ICE contract for Brent crude delivery increased 52¢, closing at $108.41/bbl. The July contract gained 51¢ to settle at $107.79/bbl. The ICE gas oil contract for May held unchanged at $906.50/tonne.

The OPEC basket of 12 benchmark crudes on May 12 was $104.21/bbl, down 25¢.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

Market watch: Energy futures prices rose slightly Friday

05/06/2002 Crude oil futures prices rose slightly Friday amid lingering uncertainty about a possible disruption of Middle East supplies, although tensions in ...

Gulf of Mexico oil service sector showing signs of an upturn

05/06/2002 The Gulf of Mexico oil service sector is experiencing the signs of an upturn, analysts with Simmons & Co. International, UBS Warburg LLC, and RBC D...

OTC: Industry, national agencies need to work together to make FPSOs work in the gulf

05/06/2002 Over the coming years, the oil and gas industry will have to keep an open line of communication with national agencies such as the US Coast Guard a...

Market watch: Energy futures prices fall as Iraq lifts embargo

05/07/2002 Crude oil futures prices fell Monday after Iraq announced plans to lift a self-imposed export embargo with exports expected to resume by Wednesday.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected