Light, sweet crude oil for May delivery on the New York market rose 55¢ to settle at $51.70/bbl on Apr. 6. Oil prices traded sharply higher in New York and London overnight after reports the US launched a missile attack on Syria.
Two US warships in the Mediterranean Sea launched nearly 60 Tomahawk missiles late Apr. 6 in response to a chemical attack in Syria for which US officials blame the Syrian government although Syrian officials deny launching the strike.
Analysts said it’s too early to tell how long geopolitical tensions about Syria might influence oil prices.
“Syria isn’t a large oil producer but is located close to large oil-producing countries,” Michael Poulsen, oil risk manager at Global Risk Management in Copenhagen, told the Wall Street Journal. “Fears exist that unrest spreads to the neighboring countries, causing supply disruptions.”
Analysts on Apr. 7 also awaited release by Baker Hughes Inc. of the weekly US rig count, an indicator of future US oil production.
Energy prices
The crude oil contract for May delivery on the New York Mercantile Exchange gained 55¢ on Apr. 6 to close at $51.70/bbl while the June contract rose 53¢ to $52.13/bbl.
The natural gas price for May gained 6¢ to a rounded $3.33/MMbtu. The Henry Hub cash gas price closed Apr. 6 at $3.23/MMbtu, up 2¢.
Heating oil for May was up nearly 1¢ to $1.61/gal. Reformulated gasoline stock for oxygenate blending for May rose 1.4¢ to a rounded $1.73/gal.
The Brent crude contract for June on London’s ICE gained 53¢ to $54.89/bbl. The July contract was up by 54¢ to $55.17/bbl. The gas oil contract settled at $483.25/tonne, up $2.25.
The average price for the Organization of Petroleum Exporting Countries’ basket of benchmark crudes on Apr. 6 was $51.82/bbl, down 13¢.
Contact Paula Dittrick at [email protected].
