MARKET WATCH: NYMEX crude oil prices surge above $50/bbl

The light, sweet oil prices for August and September delivery each climbed nearly $1/bbl to settle above $50/bbl on June 23. Separately, Britain voters decided to exit the European Union, prompting David Cameron to announce plans to resign as UK Prime Minister.

“I do not think it would be right for me to be the captain that steers our country to its next destination,” Cameron said, vowing to “steady the ship” until he steps down in October.

The British pound plummeted to a 30-year low June 24 while traders and analysts reacted to uncertainty over Britain’s financial future following the referendum.

UK natural gas prices for July and August rose on June 24. A weakening pound makes UK gas less expensive for buyers using other currencies.

The formal process for leaving the EU will involve lengthy negotiations on how to separate UK from various EU structures. Legal observers said the process could take 2 years or more if both Britain and the European Council agree to extend the discussion period.

Bank of England officials also said they were monitoring developments closely and taking steps to secure monetary and financial stability. UK Chancellor of the Exchequer George Osborne said trading could be suspended if volatility were to become extreme.

Energy prices

The August crude oil contract on the New York Mercantile Exchange gained 98¢ on June 23, settling at $50.11/bbl. The September contract also was up 98¢ to $50.76/bbl.

Natural gas for July climbed 2¢ to a rounded $2.70/MMbtu on NYMEX. The Henry Hub cash price dropped 10¢ to $2.68/MMbtu.

Heating oil for July delivery rose 1.6¢ to a rounded $1.52/gal. The price for reformulated gasoline stock for oxygenates blending for July gained 1.5¢ to a rounded $1.60/gal.

The August Brent crude contract on London’s ICE rose $1.03 to $50.91/bbl. The September contract was up $1.01 to $51.61/bbl. The July gas oil contract settled at $449.25/tonne on June 23, up $2.25.

OPEC’s basket of crudes price for June 23 was $46.16/bbl, down 30¢.

Contact Paula Dittrick at paulad@ogjonline.com.