MARKET WATCH: NYMEX, Brent crude prices up more than $1/bbl

March 19, 2018
Crude oil prices climbed by more than $1/bbl on the New York and London markets Mar. 16, but US light, sweet prices then dropped in early Mar. 19 trading on economic concerns, including suggestions of a trade war by some nations aimed at US steel and aluminum tariffs.

Crude oil prices climbed by more than $1/bbl on the New York and London markets Mar. 16, but US light, sweet prices then dropped in early Mar. 19 trading on economic concerns, including suggestions of a trade war by some nations aimed at US steel and aluminum tariffs.

Analysts awaited news from a meeting of world finance ministers in Buenos Aires this week who are openly opposing recent US moves to impose tariffs on steel and aluminum. The possibility of an international trade dispute could restrict or lower oil prices.

“Our base case remains that a trade war will be avoided,” Citibank economists said in a research note Mar. 19. “However, US protectionism…is increasing the risk of a more damaging escalation” in tensions involving international trading partners.

Separately, Bank of America Merrill Lynch analysts suggested some oil investors could be ignoring crude oil price risks such as increased hedging by US and Canadian producers as well as possible changes in production-cut targets by members of the Organization of Petroleum Exporting Countries and other major producers, including Russia.

The price of US light, sweet crude for April delivery slipped below the price for May delivery last week, which analysts say could signal a return to lower prices.

Bank of America Merrill Lynch suggested US light, sweet oil prices “could lose $5/bbl within just a few weeks.”

Energy prices

The April light, sweet crude contract on the NYMEX gained $1.15 on Mar. 16 to settle at $62.34/bbl. The May contract rose $1.16 to $62.41/bbl.

The NYMEX natural gas price for April edged up less than a cent to a rounded $2.69/MMbtu. The Henry Hub cash gas price fell 6¢ to $2.61/MMbtu on Mar. 16.

Ultralow-sulfur diesel for April climbed nearly 2¢ to a rounded $1.91/gal. The NYMEX reformulated gasoline blendstock for April climbed 2¢ to $1.94/gal.

Brent crude oil for May increased $1.09 to $66.21/bbl on London’s International Commodity Exchange. The June contract was up $1.10 to $66.05/bbl. The gas oil contract for April was $580.50/tonne, up $5.75.

OPEC’s basket of crudes was $62.74/bbl on Mar. 16, up 50¢.

Contact Paula Dittrick at [email protected].