Light, sweet crude oil for April settled at $58.61/bbl on Mar. 14, marking the highest level so far this year, while Brent crude oil declined slightly in London to settle at $67.23/bbl, marking its second-highest level of the year.
The US crude contract for April marked the front month’s highest closing level since Nov. 12, 2018, and a fourth consecutive price gain.
Reuters reported US President Donald Trump wants to cut Iran’s crude exports by about 20% to below 1 million b/d from May 2018 by requiring importing countries to reduce Iranian oil purchases to avoid US sanctions. The wire service cited two unnamed sources.
Other media outlets reported similar stories. “The goal right now is to reduce Iranian oil exports to under 1 million b/d,” one source told Reuters, adding the Trump administration realizes that pushing for a shutdown of Iran’s oil on markets in the short-term could trigger an oil price spike.
The International Energy Agency was scheduled to release its monthly oil report Mar. 15.
Separately, Baker Hughes on Mar. 15 was expected to release its weekly US rig count tally, an indicator of future production.
Energy prices
The April contract for light, sweet crude oil on the New York Mercantile Exchange increased 35¢ to settle at $58.61/bbl on Mar. 14. The contract for May delivery gained 32¢ to settle at $58.91/bbl.
NYMEX natural gas for April increased 3.5¢ to a rounded $2.85/MMbtu on Mar. 14.
Ultralow-sulfur diesel for April edged down less than 1¢ to a rounded $1.98/gal. The NYMEX reformulated gasoline blendstock for April nudged down by a fraction of a penny to remain at a rounded $1.85/gal.
Brent crude for May delivery decreased 32¢ to $67.23/bbl while the June contract increased 33¢ to settle at $67.13/bbl.
The gas oil contract for April gained $1.50 to $610.75/tonne on Mar.14.
The average price for the Organization of Petroleum Exporting Countries’ basket of crudes was $67.29/bbl on Mar. 14, up 69¢.
Contact Paula Dittrick at [email protected].
