Crude oil benchmark prices rose modestly Feb. 8 with light, sweet crude oil for March delivery settling above $52.70/bbl and Brent settling above $62/bbl although both crude benchmarks declined for the week overall ended Feb. 8.
US futures tumbled 4.6% for the week, which Dow Jones Market Data said was the largest loss since the week ended Dec. 21, 2018. Brent oil prices dropped 1% for the week ended Feb. 8.
During January, investment bankers surveyed by the Wall Street Journal slightly lowered their 2019 oil price forecasts from forecasts made during December 2018. Bankers still expect crude prices will rise in the first half.
Prices are expected to climb on production cuts by the Organization of Petroleum Exporting Countries and some non-OPEC producers.
Brent crude is expected to average slightly more than $67/bbl in 2019, down from a forecast made in December 2018 of $69/bbl, the WSJ poll of 11 investment banks showed.
Light, sweet crude oil is expected to average nearly $60/bbl in 2019 compared with $63/bbl as bankers had forecast during December 2018, the poll showed.
In other news, Reuters reported a fire Feb. 10 at the Phillips 66 Wood River, Ill., refinery, resulting in an estimated loss of 120,000 b/d of oil being refined.
Energy prices
The March contract for light, sweet crude oil on the New York Mercantile Exchange increased 8¢ to settle at $52.72/bbl on Feb. 8 while the contract for April delivery gained 9¢ to settle at $53.09/bbl.
NYMEX natural gas for March rose 3¢ to a rounded $2.58/MMbtu on Feb. 8.
Ultralow-sulfur diesel for March edged up nearly a penny to a rounded $1.91/gal. The NYMEX reformulated gasoline blendstock for March increased 2¢ to a rounded $1.45/gal.
Brent crude for April delivery gained 47¢ to settle at $62.10/bbl while the May contract increased 40¢ to settle at $62.03/bbl. The gas oil contract for February rose $8.25 to $582.50/tonne on Feb. 8.
The average price for OPEC’s basket of crudes was $61.37/bbl on Feb. 8, down 20¢.
Contact Paula Dittrick at [email protected].
