MARKET WATCH: NYMEX crude oil holds above $59/bbl

March 25, 2019
Light, sweet crude oil for May delivery declined slightly but settled above $59/bbl on Mar. 22 on the New York market. Analysts said tumbling US and European stock markets added to world economic concerns. This dragged down oil prices on fears about reduced world oil demand. Despite ending lower for the Mar. 22 trading session, US futures for light, sweet crude still rose for a third consecutive week for the week ended Mar. 22.

Light, sweet crude oil for May delivery declined slightly but settled above $59/bbl on Mar. 22 on the New York market. Analysts said tumbling US and European stock markets added to world economic concerns. This dragged down oil prices on fears about reduced world oil demand.

Despite ending lower for the Mar. 22 trading session, US futures for light, sweet crude still rose for a third consecutive week for the week ended Mar. 22.

Oil prices fell with dropping US stock prices after a report showed US manufacturing hit a 21-month low. US oil futures also fell on a rising US dollar after the US Federal Reserve on Mar. 20 said it has no plans for interest-rate increases throughout this year.

Oil is traded in US dollars on most markets, so a stronger dollar makes oil cheaper for buyers starting with other currencies.

Separately, Baker Hughes released its weekly rig-count report showing US drilling activity fell for a fifth straight week. The rig count fell 10 units to 1,016 rigs working for the week ended Mar. 22 compared with 995 rigs working this time a year ago (OGJ Online, Mar. 22, 2018).

Energy prices

The May contract for light, sweet crude oil on the New York Mercantile Exchange decreased 94¢ to settle at $59.04/bbl on Mar. 22. The contract for June delivery fell 91¢ to settle at $59.29/bbl.

NYMEX natural gas for April declined nearly 7¢ to settle at $2.75/MMbtu.

Ultralow-sulfur diesel for April dropped 2¢ to $1.96/gal. The NYMEX reformulated gasoline blendstock for April gained less than 1¢ to $1.93/gal.

Brent crude for May delivery decreased 83¢ to $67.03/bbl while the June contract increased 92¢ to settle at $66.75/bbl.

The gas oil contract for April fell $13 to $597.25/tonne on Mar. 22.

The average price for the Organization of Petroleum Exporting Countries’ basket of crudes was $66.67/bbl on Mar. 22, up $1.11.

Contact Paula Dittrick at [email protected].