US light, sweet crude oil prices declined moderately Apr. 9 on the New York market, but the May and June contracts still settled above $63/bbl. Brent crude oil for June also dropped modestly in London but again settled above $70/bbl for a third consecutive session.
Ole Hansen, Saxo Bank head of commodity strategy, said oil prices were supported by traders’ concerns about future oil supplies from strife-torn Libya.
Brent prices have returned above $70/bbl for the first time in 5 months while the US benchmark is attempting to reenter the $65-75 range where light, sweet crude prices spent 6 months before the November-December 2018 collapse, Hansen said.
The International Monetary Fund downgraded its world economic growth forecast to the lowest in 10 years on Apr. 9 based on doubts about Russia’s willingness to support a prolonged period of oil production cuts.
The IMF’s World Economic Outlook report, which forecasts world 2019 gross domestic product will rise 3.3%, down slightly from its January forecast.
The Organization of Petroleum Exporting Countries and some non-OPEC producers, including Russia, are scheduled to review existing production-cut targets at a meeting in June.
“But these developments are unlikely to hold any sway over the market as long Saudi Arabia continues to back the production cut deal as aggressively as it has done so far,” Hansen said.
Energy prices
The May contract for light, sweet crude oil on the New York Mercantile Exchange dropped 42¢ to settle at $63.98/bbl on Apr. 9. The price for June delivery declined 37¢ to settle at $63.96/bbl.
NYMEX natural gas for May edged down less than 1¢ to a rounded $2.70/MMbtu.
Ultralow-sulfur diesel for May declined 1¢ to a rounded $2.04/gal. The NYMEX reformulated gasoline blendstock for May rose 1¢ to settle at a rounded $2/gal.
Brent crude for June dropped 49¢ to settle at $70.61/bbl and the July price declined 45¢ to settle at $70.16/bbl.
The gas oil contract for April fell $3.50 to settle at $622.25/tonne on Apr. 9.
OPEC’s basket of crudes for Apr. 9 was $70.35/bbl, up 2¢.
Contact Paula Dittrick at [email protected].
