Light, sweet crude oil prices gained on the New York market Mar. 7 as did Brent crude oil prices in London despite indicators of weakening world economic growth.
The European Central Bank cut its 2019 growth forecast to 1.1% from 1.7%. Previously, the Organization for Economic Cooperation and Development downgraded its growth forecasts for the G20.
“All in all, positives are increasingly in short supply for the world economy, and this will only serve to darken the outlook for oil demand,” Stephen Brennock, PVM Oil Associates Ltd. analyst, told the Wall Street Journal.
On Mar. 8, the US and China had yet to schedule a summit between US President Donald Trump and Chinese leader Xi Jinping, indicating neither side believes an agreement is imminent to the two nations’ ongoing trade dispute.
Terry Branstad, US envoy to Beijing, said negotiators continue trying to work out differences, including details on enforcement of any eventual deal.
“Both sides agree that there has to be significant progress, meaning a feeling that they’re very close before that happens,” before meeting preparations are made, Branstad told WSJ from the US embassy in Beijing. “We’re not there yet. But we’re closer than we’ve been for a very long time.”
Energy prices
The April contract for light, sweet crude oil on the New York Mercantile Exchange increased 44¢ to settle at $56.66/bbl on Mar. 7. The contract for May delivery also increased 41¢ to settle at $57.03/bbl.
NYMEX natural gas for April increased 2¢ to a rounded $2.86/MMbtu on Mar. 7.
Ultralow-sulfur diesel for April decreased less than 1¢ to remain at $2.01/gal. The NYMEX reformulated gasoline blendstock for April gained 1¢ to a rounded $1.80/gal.
Brent crude for May delivery gained 31¢ to $66.30/bbl while the June contract increased 29¢ to settle at $66.26/bbl.
The gas oil contract for March gained $2.25 to $622.25/tonne on Mar. 7.
The average price for the Organization of Petroleum Exporting Countries’ basket of crudes was $65.57/bbl on Mar. 7, up 53¢.
Contact Paula Dittrick at [email protected].
