MARKET WATCH: NYMEX crude oil for June, July settles above $66/bbl

Light, sweet crude oil for both June and July contracts rose to settle above $66/bbl on the New York market Apr. 23 while Brent for June delivery rose to settle above $74/bbl for a second day on the London market.

Apr 24th, 2019

Light, sweet crude oil for both June and July contracts rose to settle above $66/bbl on the New York market Apr. 23 while Brent for June delivery rose to settle above $74/bbl for a second day on the London market.

The price gains continued a rally triggered by an announcement from US President Donald Trump’s administration that no extensions will be granted to buyers of Iran oil. The administration has waivers on US sanctions against Iran for China, India, Japan, South Korea, Italy, Greece, Turkey, and Taiwan.

Existing waivers expire on May 2. US Sec. of State Mike Pompeo said Apr. 22 that the administration will end those waivers for US allies rather than renew them (OGJ Online, Apr. 22, 2019).

Iran’s government officials suggested they are prepared for the end of waivers, while the Revolutionary Guards repeated a threat to close the Strait of Hormuz, an oil shipping channel.

US White House officials said they were talking with Saudi Arabia and the United Arab Emirates to ensure the market was “adequately supplied.” The US also has economic sanctions against Venezuela as well as Iran.

Saudi Arabian Energy Minister Khalid al-Falih issued an Apr. 22 statement saying Saudi Arabia did not commit to raising oil production but was monitoring “oil market developments” and would coordinate with other major producers to ensure a balanced market.

The Organization of Petroleum Exporting Countries is scheduled to meet in June. OPEC and some non-OPEC producers, including Russia, have complied with production-cut targets to support oil prices.

Some analysts now suggest the world oil market could see tighter oil supplies and possibly escalating oil prices.

Energy prices

The June contract for light, sweet crude oil on the New York Mercantile Exchange climbed 75¢ to settle at $66.18 on Apr. 23. The price for July delivery also gained 75¢ to settle at $66.14/bbl.

NYMEX natural gas for May fell nearly 7¢ to a rounded $2.45/MMbtu.

Ultralow-sulfur diesel for May increased 1.4¢ to a rounded $2.12/gal. The NYMEX reformulated gasoline blendstock for May edged up less than 1¢ to settle at $2.13/gal.

Brent crude for June climbed 47¢ to settle at $74.51/bbl. The July price climbed 50¢ to settle at $73.89/bbl.

The gas oil contract for May decreased 50¢ to $648.25/tonne on Apr. 23. The average for OPEC’s basket of crudes was $73.37, up 93¢, on Apr. 23.

Contact Paula Dittrick at paulad@ogjonline.com

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