Crude oil prices on futures markets in New York and London closed February on 3-month highs with the light, sweet crude oil contract for April settling above $57/bbl on Feb. 28 while the Brent April contract settled above $66/bbl.
Analysts agreed crude prices are being supported by 2019 production cuts as promised in December 2018 from the Organization of Petroleum Exporting Countries and some other major producers, including Russia.
A Reuters survey of 36 economists and analysts on Feb. 28 forecast Brent crude oil futures will average $66.44/bbl in 2019, slightly below the $67.32/bbl forecast in January’s poll.
Ole Hansen, Saxo Bank head of commodity strategy, noted the Weekly Gas Storage Report from the US Energy Information Administration showed a smaller than expected drop in US natural gas stored underground across the Lower 48 for the week ended Feb. 22.
US weather forecasts show colder-than-normal temperatures across most of the nation for the next 6-10 days.
EIA reported working gas in storage was 1.539 tcf as of Feb. 22, marking a net decrease of 166 bcf from the previous week. US gas storage was 154 bcf less than last year at this time and 424 bcf below the 5-year average of 1.963 tcf, EIA said.
Energy prices
The April contract for light, sweet crude oil on the New York Mercantile Exchange gained 28¢ to settle at $57.22/bbl on Feb. 28. The contract for May delivery increased 24¢ to settle at $57.61/bbl.
NYMEX natural gas for April edged up 1¢ to $2.81/MMbtu on Feb. 28.
Ultralow-sulfur diesel for March nudged up less than 1¢ to remain at $2.02/gal. The NYMEX reformulated gasoline blendstock for March decreased nearly 5¢ to remain at a rounded $1.63/gal.
Brent crude for April delivery settled unchanged from the previous day at $66.39/bbl while the May contract also decreased 25¢ to settle at $66.31/bbl. The gas oil contract for March gained $1.25 to $625/tonne on Feb. 28.
The average price for OPEC’s basket of crudes was $65.28/bbl on Feb. 28, up 31¢.
Contact Paula Dittrick at [email protected].
