Oil prices fell by more than $1/bbl on both New York and London markets on Apr. 6, which analysts attributed to lower equity values and concerns about a US-China trade war.
US-China trade tensions would hinder global growth and oil demand growth long term, Bjarne Schieldrop, SEB Markets chief commodities analyst told the Wall Street Journal. “However, oil market fundamentals are tightening.”
Schieldrop said “oil prices look set to be squeezed higher” as long as the Organization of Petroleum Exporting Countries and some non-OPEC producers, including Russia, continue abiding by crude production cuts of 1.8 million b/d.
The agreement, which is set to expire Dec. 31, helped crude prices climb more than 50% in last year’s second half.
Baker Hughes reported the US drilling rig count for the week ended Apr. 6 was up by 10 units to 1,003. The report showed an overall increase of 164 units from year-ago levels (OGJ Online, Apr. 6, 2018).
Traders and analysts await the release of monthly oil market reports from OPEC and the International Energy Agency for potential revisions to world oil demand forecasts.
Energy prices
The May light, sweet crude contract on the NYMEX fell $1.49 on Apr. 6 to settle at $62.06/bbl. The June contract declined $1.44 to $62.10/bbl.
The NYMEX natural gas price for May increased 2.5¢ to a rounded $2.70/MMbtu. The Henry Hub cash gas price on Apr. 6 rose 1¢ to $2.78/MMbtu.
Ultralow-sulfur diesel for May fell by nearly 2¢ to remain at a rounded $1.95/gal. The NYMEX reformulated gasoline blendstock for May settled down 2.6¢ to a rounded $1.95/gal.
Brent crude oil for June declined $1.22 to $67.11/bbl on London’s International Commodity Exchange. The July contract fell $1.22 to $66.68/bbl. The gas oil contract for April was $602.75/tonne, down $5.50.
Contact Paula Dittrick at [email protected].
