MARKET WATCH: Crude oil benchmarks gain after US demands on Iran
Brent crude oil prices approached $80/bbl during the May 22 trading session in London a day after US Sec. of State Mike Pompeo outlined demands on May 21 that Iran must meet before US officials would agree to enter a new nuclear agreement with Iran.
US President Donald Trump has threatened “the strongest sanctions in history” unless Iran complies with US demands. Previously Trump withdrew US participation in a 2015 international agreement to curb Iran’s nuclear program.
The European Union remains supportive of the international alliance and is encouraging Iran to abide by the 2015 agreement.
Separately regarding Venezuela, a US executive order issued May 21 broadened a ban on US citizens buying Venezuelan debt, potentially making it harder for Venezuela to obtain funding for its struggling oil industry.
Energy prices
The June light, sweet crude contract on the New York Mercantile Exchange settled at $72.24/bbl on May 21, up 96¢. The July price was up 98¢ to $72.35/bbl.
The NYMEX natural gas price for June decreased nearly 4¢ to a rounded $2.80/MMbtu. The Henry Hub cash gas price edged up 1¢ to $2.77/MMbtu on May 21.
Ultralow-sulfur diesel for June nudged up less than a penny to $2.27/gal. The NYMEX reformulated gasoline blendstock for June gained 2¢ to settle at a rounded $2.25/gal.
Brent crude oil for July increased 71¢ to settle at $79.22/bbl on London’s International Commodity Exchange. The August contract was up 77¢ to $79.26/bbl. The gas oil contract for June was $692.75/tonne, down $5.25.
The Organization of Petroleum Exporting Countries’ basket of crudes was $76.21/bbl on May 21, down 26¢.
Contact Paula Dittrick at [email protected].
About the Author
Paula Dittrick
Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.