Light, sweet crude oil for June delivery gained modestly to approach $64/bbl on the New York market Apr. 30 while the Brent contract for June held unchanged at just above $72/bbl in London.
Analysts said oil prices climbed after an RIA news report that Saudi Arabia officials said they will not rush to increase production following the end of waivers that enabled some countries to buy Iranian oil despite US unilateral sanctions against Iran.
The Organization of Petroleum Exporting Countries and some other producers, including Russia, are following production-cut levels through June. Some analysts worry that major producers might increase supply to make up for lost Iranian exports, triggering lower oil prices.
Oil prices have risen this year overall as analysts and investors monitor how geopolitical uncertainty surrounding Iran, Libya, and Venezuela might contribute to tighter world oil supplies.
A Wall Street Journal survey indicated that analysts and traders expect US oil inventories will have climbed 900,000 bbl for the week ended Apr. 26. The US Energy Information Administration was scheduled to release its US inventory report later May 1.
The American Petroleum Institute said late Apr. 30 that its own data for the week ended Apr. 26 showed US oil supplies, excluding the Strategic Petroleum Reserve, increased by 6.8 million bbl while product levels fell.
API reported US gasoline levels down by 1.1 million bbl and distillate down by 2.1 million bbl. The EIA report is the more closely watched of the two reports by analysts and traders.
Energy prices
The June contract for light, sweet crude oil on the New York Mercantile Exchange gained 41¢ to settle at $63.91/bbl on Apr. 30. The price for July delivery was up 41¢ to settle at $63.98/bbl.
NYMEX natural gas for June fell nearly 2¢ to $2.57/MMbtu.
Ultralow-sulfur diesel for May rose 2¢ to $2.08/gal. The NYMEX reformulated gasoline blendstock for May gained 4¢ to a rounded $2.12/gal.
Brent crude for June held unchanged at $72.04/bbl. The July price climbed 52¢ to settle at $72.06/bbl.
The gas oil contract for May increased $7.50 to $638/tonne on Apr. 30. The average for OPEC’s basket of crudes was not immediately available for Apr. 30.
Contact Paula Dittrick at [email protected].
