MARKET WATCH: NYMEX oil prices end February above $57/bbl
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].
About the Author
Paula Dittrick
Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.