Light, sweet crude oil prices fell slightly May 21 as the contract continues to hover at $63/bbl on the New York market while Brent crude oil prices gained modestly with the July contract settling above $72/bbl.
Ole Hansen of Saxo Bank said oil prices continue trading within a tight range despite ongoing Middle East tensions and the possibility of extended production cuts by the Organization of Petroleum Exporting Countries and others, including Russia.
Hansen said concerns about a US-China trade war combined with a strong US dollar to keep light, sweet oil prices rangebound. Oil is traded in US dollars on most markets worldwide, so a stronger dollar makes oil more expensive for buyers using other currency.
“Concerns about slowing [oil] demand growth due to the negative impact on the global economy of the US–China trade war continues to spread,” Hansen said.
The US Energy Information Administration was scheduled May 22 to realize its weekly oil and products inventory report.
Energy prices
Crude oil on the New York Mercantile Exchange for June fell 11¢ to settle at $62.99/bbl on May 21 while the July contract decreased 8¢ to settle at $63.13/bbl.
NYMEX natural gas for June dropped 6¢ to settle at $2.61/MMbtu.
Ultralow-sulfur diesel for June edged up less than 1¢ to a rounded $2.08/gal. The NYMEX reformulated gasoline blendstock for June also edged up nearly 1¢ to a rounded $2.02/gal.
Brent crude for July climbed 21¢ to $72.18/bbl. The August price increased 15¢ to settle at $71.31/bbl.
The gas oil contract for June fell $6.50 to $645/tonne on May 21.
The average for OPEC’s basket of crudes was $71.71/bbl on May 21, down 76¢.
Contact Paula Dittrick at [email protected].
