MARKET WATCH: NYMEX, Brent crude oil prices steady following tariff exemption

Aug. 10, 2018
Crude oil benchmark prices were down slightly on New York and London futures markets Aug. 9, one day after the tumultuous $2/bbl-drop midweek. China’s declaration to impose additional tariffs of 25% on certain US imports spooked the market, but the exemption of crude oil helped steady prices Aug. 9.

Crude oil benchmark prices were down slightly on New York and London futures markets Aug. 9, one day after the tumultuous $2/bbl-drop midweek.

China’s declaration to impose additional tariffs of 25% on certain US imports spooked the market, but the exemption of crude oil helped steady prices Aug. 9.

US Energy Information Administration records show China’s reliance on US-produced crude oil. The country imported record levels of US oil in 2017, according to EIA data going back to 1993.

“The US has been and will remain the main source of incremental crude production globally,” Den Syahril, an analyst at industry consultant FGE, told Bloomberg. “With several new refineries starting up over the next couple of years, China would thus be wary of taking a decision that could end up severely hurting its domestic refining industry.”

Energy prices

The light, sweet crude contract for September delivery on the New York Mercantile Exchange dipped 13¢ to close at $66.81/bbl on Aug. 9. The October contract declined 11¢ to settle at $66.14/bbl.

The NYMEX natural gas price for September remained unchanged at a rounded $2.95/MMbtu. The Henry Hub cash gas price gained 1¢ to $2.98/MMbtu.

Ultralow-sulfur diesel for September decreased 1¢ to a rounded $2.11/gal. The NYMEX reformulated gasoline blendstock for September fell 2¢ to a rounded $2/gal.

Brent crude oil for October decreased 21¢ to $72.07/bbl on London’s International Commodity Exchange. The November contract fell 25¢ to settle at $72.39/bbl. The gas oil contract for August was $647.25/tonne, up 50¢.

The Organization of Petroleum Exporting Countries’ basket of crudes average price for Aug. 9 was $72.03/bbl, down 7¢.