Benchmark oil prices in New York and London rose modestly while traders and analysts agree the oil market is holding fairly steady awaiting an anticipated May 12 decision from US President Donald Trump regarding possible US sanctions on Iran.
Oil prices have risen in recent weeks on growing expectations Trump will halt US participation in an international deal from 2015 that lifted Western sanctions against Iran. Any future sanctions on Iran could hinder its oil output and reduce world oil supply.
Commerzbank analysts said, “This will be the main issue preoccupying the oil market, with fundamental factors such as stock levels and production data taking a back seat until this has been resolved.”
Regarding US future oil production, Baker Hughes was scheduled to release its weekly rig count on May 4.
Energy prices
The June light, sweet crude contract on the NYMEX gained 50¢ on May 3 to settle at $68.43/bbl. The July price was up 49¢ to $68.26/bbl.
The NYMEX natural gas price for June declined nearly 3¢ to settle at $2.72/MMbtu. The Henry Hub cash gas price was $2.69/MMbtu on May 3, down 4¢.
Ultralow-sulfur diesel for June fell less than 1¢ to settle at $2.11/gal. The NYMEX reformulated gasoline blendstock for June gained nearly 1¢ to a rounded $2.09/gal.
Brent crude oil for July gained 26¢ to settle at $73.62/bbl on London’s International Commodity Exchange. The August contract was up 28¢ to $73.22/bbl. The gas oil contract for May held unchanged at $642/tonne.
The Organization of Petroleum Exporting Countries’ basket of crudes averaged $70.66/bbl on May 3, up 19¢.
Contact Paula Dittrick at [email protected].
