Oil prices rose Aug. 17 on anticipated trade talks between the US and China, ending a volatile week for oil prices that experienced downward pressure throughout the week from a strengthening US dollar and building US crude oil inventories.
“Although oil prices rose…they recouped only some of the losses they had chalked up the day before,” Commerzbank analysts wrote in an Aug. 17 research note. “Brent is thus facing its third consecutive weekly loss [and] West Texas Intermediate even looks set to be down for the seventh week running.”
Oil prices were rising in early trading on the New York market on Aug. 20. Giovanni Staunovo, a commodities analyst at UBS Wealth Management, said oil prices stand to benefit from trade talks.
Meanwhile, US sanctions on Iran specifically targeting oil are expected to be implemented in November. Analysts said it remains unclear the volume of Iranian oil that will be removed from the market. US President Donald Trump is pushing other countries to stop buying Iran’s oil.
“I still believe Europe, Japan, and South Korea will go close to zero, India has indicated it intends to halve its imports,” Staunovo said, “I’m not sure about Turkey and China but even if they held steady…it would be 1 to 1.5 million b/d.”
Energy prices
The light, sweet crude contract for September delivery on the New York Mercantile Exchange gained 45¢ to close at $65.91/bbl on Aug. 17. The October contract increased 33¢ to settle at $65.21/bbl.
The NYMEX natural gas price for September increased by nearly 4¢ to a rounded $2.95/MMbtu. The Henry Hub cash gas price decreased 2¢ to $2.97/MMbtu.
Ultralow-sulfur diesel for September edged up less than 1¢ to remain at a rounded $2.10/gal. The NYMEX reformulated gasoline blendstock for September dropped less than a penny to $1.98/gal.
Brent crude oil for October rose 40¢ to $71.83/bbl on London’s International Commodity Exchange. The November contract increased 32¢ to settle at $72.07/bbl. The gas oil contract for August was $645.75/tonne on Aug. 17, up $5.
The Organization of Petroleum Exporting Countries’ basket of crudes for Aug. 17 was $70.27/bbl, up 80¢.
Contact Paula Dittrick at [email protected].
