The light, sweet crude oil contract for October gained on the New York market Aug. 30 to settle above $70/bbl while Brent crude oil for October settled above $77/bbl.
Prices gained as traders and analysts cited growing concerns about the loss of some Iranian crude oil onto world markets due to US unilateral sanctions being imposed against Iran. US President Donald Trump in May announced an exit from an agreement with other nations that previously lifted sanctions against Iran in exchange for that nation’s cooperation on its nuclear program.
“US sanctions toward Iran are now increasingly kicking in, which will help to dry up the physical crude oil market,” SEB head of commodities Bjarne Schieldrop said in a research note. “This will shift the front-end Brent crude oil price into the higher $70s range with a touch of $80s.”
The Trump cabinet is asking other countries to stop buying Iranian crude.
Eugen Weinberg, Commerzbank head of commodities research, said the US-China trade conflict is creating what he calls “a greater feeling of discomfort in the market.”
Energy prices
The light, sweet crude contract for October delivery on the New York Mercantile Exchange rose 74¢ to $70.25/bbl on Aug. 30. The November contract increased 64¢ to settle at $69.81/bbl.
The NYMEX natural gas price for October gained 1¢ to $2.87/MMbtu. The Henry Hub cash gas dropped 6¢ to $2.90/MMbtu.
Ultralow-sulfur diesel for September edged up less than 1¢ to remain at a rounded $2.25/gal. The NYMEX reformulated gasoline blendstock for September rose 3¢ to a rounded $2.14/gal.
Brent crude oil for October increased 63¢ to $77.77/bbl on London’s International Commodity Exchange. The November contract rose 56¢ to $78.02/bbl. The gas oil contract for September was $688/tonne on Aug. 30, up $3.75.
The Organization of Petroleum Exporting Countries’ basket of crudes for Aug. 30 was $75.72/bbl, up $3.75.
Contact Paula Dittrick at [email protected].
