Light, sweet crude oil prices fell moderately on the New York market while Brent crude oil prices gained positive momentum in London on Mar. 6 for a second day in which the benchmarks closed mixed.
The Wall Street Journal said its survey showed investment bankers in February left their forecasts for 2019 oil prices unchanged from January’s projections. They expect oil prices to be supported in the first half by oil production cuts from the Organization of Petroleum Exporting Countries and some non-OPEC producers, including Russia.
Representatives of 11 investment banks surveyed said they expect Brent crude will average above $67/bbl while light, sweet crude oil will average nearly $60/bbl.
“Oil prices will gradually rise through [the third quarter] on the back of producer supply cuts engaged by OPEC and its non-OPEC allies, alongside involuntary output reductions in countries that face supply risks like Venezuela, Libya, or Nigeria,” Harry Tchilinguirian, BNP Paribas head of commodity research, told WSJ.
He noted that forecasts hinge on “US-China trade tensions remaining at bay.”
Energy prices
The April contract for light, sweet crude oil on the New York Mercantile Exchange dropped 34¢ to settle at $56.22/bbl on Mar. 6. The contract for May delivery also fell 32¢ to settle at $56.82/bbl.
NYMEX natural gas for April decreased 4¢ to a rounded $2.84/MMbtu on Mar. 6.
Ultralow-sulfur diesel for April increased less than 1¢ to remain at $2.01/gal. The NYMEX reformulated gasoline blendstock for April gained 2¢ to a rounded $1.79/gal.
Brent crude for May delivery gained 13¢ to $65.99/bbl while the June contract increased 5¢ to settle at $65.97/bbl.
The gas oil contract for March gained 75¢ to $620/tonne on Mar. 6.
The average price for OPEC’s basket of crudes was $65.04/bbl on Mar. 6, up 6¢.
Contact Paula Dittrick at [email protected].
