MARKET WATCH: Crude oil prices approach 5-month highs

April 9, 2019
US light, sweet crude oil future prices for May and June rose by more than $1/bbl Apr. 8 on the New York market with Brent crude for June delivery closing in London above $71/bbl on Apr. 9. Analysts said oil prices were supported by unrest in Libya.

US light, sweet crude oil future prices for May and June rose by more than $1/bbl Apr. 8 on the New York market with Brent crude for June delivery closing in London above $71/bbl on Apr. 9. Analysts said oil prices were supported by unrest in Libya.

Khalifa Hifter’s forces pushed toward Tripoli on Apr. 8. Hifter is aligned with a rival eastern government. His forces include various militias called the Libyan National Army. Meanwhile, the European Union called for full implementation of “the humanitarian truce.”

The Western-backed Tripoli government has launched a counter offensive against Hifter.

Separately, Norbert Ruecker of Swiss bank Julius Baer told Reuters that, “The mood is increasingly turning bullish, but several feedback loops are about to start spinning that stand in the way of a prolonged oil rally.” He noted Russia wants to raise its oil production.

The Organization of Petroleum Exporting Counties along with some non-OPEC producers, including Russia, plan in June to discuss existing production-cut levels.

Moty Kuperberg, director of Oil & Gas Dynamic Shipping in Haifa, Israel, told OGJ that he believes the oil market is balanced with the existing OPEC and non-OPEC production-cut agreement.

Kuperberg said a “relatively stable market [was] stimulated last week with the same old stories and threats on Venezuela, Iran, and Libya.”

He said, “We support our earlier oil price forecast at the $57-75/bbl range,” adding that $57/bbl is his anticipated low for light, sweet crude with $75/bbl being the high for Brent.

For 2019, Kuperberg expects light, sweet crude will average $61/bbl and Brent will average $69/bbl.

Energy prices

The May contract for light, sweet crude oil on the New York Mercantile Exchange gained $1.32 to settle at $64.40/bbl on Apr. 8. The price for June delivery added $1.18 to settle at $64.33/bbl.

NYMEX natural gas for May gained more than 4¢ to a rounded $2.71/MMbtu.

Ultralow-sulfur diesel for May gained 1.5¢ to a rounded $2.06/gal. The NYMEX reformulated gasoline blendstock for May rose nearly 2¢ to settle at a rounded $1.99/gal.

Brent crude for June contract gained 76¢ to settle at $71.10/bbl and the July price added 68¢ to settle at $70.61/bbl.

The gas oil contract for April rose $7.75 to settle at $625.75/tonne on Apr. 8.

OPEC’s basket of crudes for Apr. 8 was $70.33/bbl, up $1.31.

Contact Paula Dittrick at [email protected].