Light, sweet oil for July gained 91¢ on the New York market June 6 to settle at $52.59/bbl while the Brent contract for August climbed by $1.04 to settle at $61.67/bbl in London, which analysts attributed to progress in US-Mexico talks about border security.
US President Donald Trump said, “Progress was made,” but he also said Mexico needs to do more to stop US tariffs from being imposed on $350 billion of US imports from Mexico.
Oil prices rose June 6 after Bloomberg News reported US officials are considering a delay in the tariffs on Mexican goods.
Commerzbank analysts forecast Brent will reach $70/bbl by Dec. 31, saying Commerzbank expects the Organization of Petroleum Exporting Countries likely will extend a current production-cut agreement with other major producers through the second half of this year.
Rystad Energy estimates OPEC crude oil production of 29.9 million b/d for May, the lowest monthly output level in more than 5 years and 2.6 million b/d below October 2018 reference levels.
For 2019, Rystad forecasts OPEC crude production of 30.3 million b/d, down 1.6 million b/d year-over-year.
Energy prices
Crude oil on the New York Mercantile Exchange for August contract rose by 90¢ to settle at $52.73/bbl.
NYMEX natural gas for July was down 5¢ to settle at a rounded $2.32/MMbtu.
Ultralow-sulfur diesel for July increased less than 1¢ to a rounded $1.79/gal. The NYMEX reformulated gasoline blendstock for July gained 1.5¢ to a rounded $1.71/gal.
Brent crude for September climbed 99¢ to settle at $60.52/bbl.
The gas oil contract for June fell 25¢ to $542/tonne on June 6.
The average for OPEC’s basket of crudes was $60.88/bbl, down 16¢.
Contact Paula Dittrick at [email protected].
