Light, sweet crude oil for June delivery gained 13¢ to settle at $61.94/bbl on the New York market May 3 while the July contract added 14¢ to settle at $62.04/bbl. Despite the slight rise for the trading session, US oil futures prices fell for the week for a second consecutive week.
The US unemployment rate for April reached 3.6%—its lowest since 1969—which supported oil prices after the US Labor Department report came out May 3, saying nonfarm payrolls rose a seasonally adjusted 263,000 in April, higher than expected.
Separately, May 3 marked the start of tougher US sanctions on Iran in which the Trump administration is no longer allowing any countries to buy Iranian oil without facing US financial penalties. The goal is to end all Iranian oil exports.
“We’re going to zero—going to zero across the board” US Sec. of State Mike Pompeo announced in April when he said the US was ending the waivers on sanctions that it had granted eight countries, including China, regarding US sanctions on Iran.
Separately, US President Donald Trump threatened to increase tariffs on $200 billion of Chinese goods to 25% from 10%.
“The trade deal with China continues, but too slowly, as they attempt to renegotiate,” the president tweeted.
Along with raising tariffs, Trump also threatened to hit an additional $325 billion of Chinese goods with tariffs at the 25% rate. Oil market analysts worldwide watch China’s economic growth as an indicator of future oil demand.
Energy prices
On the New York Mercantile Exchange, natural gas for June fell 2¢ to $2.57/MMbtu.
Ultralow-sulfur diesel for June dropped less than 1¢ to a rounded $2.07/gal. The NYMEX reformulated gasoline blendstock for June edged up nearly 1¢ to a rounded $2.03/gal.
Brent crude for July gained 10¢ to $70.85/bbl. The August price edged up 1¢ to settle at $72.03/bbl.
The gas oil contract for May increased $11.50 to $649/tonne on May 3. The average for OPEC’s basket of crudes was $70.61/bbl on May 3, down 37¢.
Contact Paula Dittrick at [email protected].
