Light, sweet crude oil and Brent crude futures prices rose modestly in volatile trading May 6, which analysts attributed to US-Iran tensions and to uncertainty regarding US-China trade talks after US President Donald Trump’s threat that he might raise tariffs on Chinese goods.
Trump said on Twitter on May 5 that he would raise tariffs on $200 billion of Chinese products to 25% from the current 10%, starting May 10. He also said he would tax nearly all of China’s remaining US exports “shortly” because of the slow progress on a US-China trade deal.
In February, Trump agreed to keep the tariffs at 10% as trade talks progressed.
China’s Commerce Ministry said May 7 that a delegation led by China Vice-Premier Liu He still will visit Washington, DC, on May 9-10 for trade talks, a day later than originally planned.
In US-Iran relations, US officials sent a carrier strike group and bombers to the Middle East as a message to Iran that any attack on US interests or its allies will be met with “unrelenting force,” US National Security Adviser John Bolton said.
US officials told ABC News the deployments came after “clear indications” Iranian and Iranian proxy forces were preparing for a possible attack against US forces on land in Iraq and Syria as well as at sea.
Energy prices
Crude oil on the New York Mercantile Exchange for June gained 31¢ to settle at $62.25/bbl on May 6 while the July contract gained 33¢ to settle at $62.37/bbl.
On the New York Mercantile Exchange, natural gas for June fell 4¢ to $2.52/MMbtu.
Ultralow-sulfur diesel for June dropped less than 1¢ to remain at a rounded $2.07/gal. The NYMEX reformulated gasoline blendstock for June dropped nearly 3¢ to a rounded $2/gal.
Brent crude for July gained 39¢ to $71.24/bbl. The August price climbed 34¢ to settle at $70.37/bbl.
The gas oil contract for May decreased $9 to $640/tonne on May 6. The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $70.23/bbl on May 6, down 38¢.
Contact Paula Dittrick at [email protected].
