Light, sweet crude oil for May delivery declined on the New York market to settle slightly above $58.80/bbl on Mar. 25 while Brent crude oil for May delivery gained slightly in London to settle just above $67.20/bbl.
US Secretary of State Mike Pompeo said President Donald Trump’s administration will not “stand idly by” while Russia sends troops to Venezuela. Russia has about 100 soldiers in Venezuela, a member of the Organization of Petroleum Exporting Countries.
The State Department issued a statement saying Pompeo told Russia that sending troops into Venezuela in support of President Nicolas Maduro risks the welfare of Venezuelans.
Earlier this year, Trump imposed oil sanctions on Venezuela where Maduro is in a standoff with Juan Guaido, an opposition leader the US recognizes as Venezuela’s president.
Meanwhile, Venezuela’s oil production continues to drop amid its ongoing economic crisis. US sanctions on both Iran and Venezuela have reduced overall world oil supplies.
Carsten Fritsch, a Commerzbank AG analyst in Frankfurt, said oil market participants appear focused for now on tight crude supplies rather than on the oil demand outlook. Indicators of a world economic slowdown and a US-China trade dispute threaten world oil demand growth.
Energy prices
The May contract for light, sweet crude oil on the New York Mercantile Exchange decreased 22¢ to settle at $58.82/bbl on Mar. 25. The contract price for June delivery fell 21¢ to settle at $59.08/bbl.
NYMEX natural gas for April rose less than 1¢ to remain at $2.75/MMbtu.
Ultralow-sulfur diesel for April gained 1.5¢ to $1.98/gal. The NYMEX reformulated gasoline blendstock for April gained slightly more than l¢ to a rounded $1.94/gal.
Brent crude for May delivery increased 18¢ to $67.21/bbl while the June contract increased 6¢ to settle at $66.81/bbl.
The gas oil contract for April rose $9.50 to $606.75/tonne on Mar. 25. OPEC’s basket of crudes fell 48¢ to average $66.19/bbl on Mar. 25.
Contact Paula Dittrick at [email protected].
