Light, sweet oil for July dropped to settle under $59/bbl on the New York market May 29 while Brent prices dropped to below $70/bbl for the July delivery contract, but the benchmarks did not plummet by more than $3/bbl as they did a few days earlier on geopolitical concerns.
Analysts said US-Middle East tensions raise supply concerns generally supportive to crude oil prices. Separately, US-China trade tensions could limit oil demand as trade talks appeared to move further from resolution, some analysts said.
On May 29, light, sweet futures dropped during the trading session to $56.88/bbl but recovered to settle higher by the end of the trading session.
The US Energy Information Administration was scheduled to release its weekly report on US oil on May 30. Analysts surveyed by the Wall Street Journal forecasted, on average, a decline of 1 million bbl for the week ended May 24.
Energy prices
Crude oil on the New York Mercantile Exchange for July fell 33¢ to settle at $58.81/bbl on May 29 while the August contract dropped 40¢ to settle at $58.95/bbl.
NYMEX natural gas for June rose 5¢ to settle at $2.63/MMbtu.
Ultralow-sulfur diesel for June declined 2.5¢ to $1.97/gal. The NYMEX reformulated gasoline blendstock for June fell 1¢ to a rounded $1.95/gal.
Brent crude for July was down 66¢ to $69.45/bbl. The August price decreased 80¢ to settle at $67.87/bbl.
The gas oil contract for June fell $13 to $605.75/tonne on May 29.
The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $68.84/bbl on May 29, up 50¢.
Contact Paula Dittrick at [email protected].
