MARKET WATCH: NYMEX, Brent crude oil prices dropped about $2/bbl
Light, sweet crude oil for June and July each dropped about $1.90/bbl to settle under $64/bbl on the New York market Apr. 25 while Brent prices fell by about $2/bbl for June and July contracts to settle under $73/bbl on the London market that same day.
Hans van Cleef, senior energy economist with ABN-AMRO, said the oil market faces what he calls geopolitical poker games.
The US announced it will end the wavers granted eight countries on Iranian oil sanctions. Only five of the eight used the waivers to buy Iranian oil after the US unilateral sanctions. The five were China, India, Turkey, South Korea, and Japan.
“Effectively, the waivers allowed the remaining five countries to continue to buy,” Iranian oil, van Cleef said, adding the end of the wavers in May means Iran is no longer allowed to trade or export oil in US dollars.
He said officials from China and India have said dropping of wavers will not help the balance in international oil markets but will trigger more price volatility and heighten geopolitical tensions.
Iran responded to recent US actions by threatening to close the Strait of Hormuz.
FGE of Singapore issued a statement in which FGE Chairman Fereidun Fesharaki said the chance of military conflict within the next 12 months has risen to 50%.
Energy prices
The June contract for light, sweet crude oil on the New York Mercantile Exchange dropped $1.91 to settle at $63.30 on Apr. 25. The price for July delivery fell $1.90 to settle at $63.38/bbl.
NYMEX natural gas for May gained 5¢ to a rounded $2.56/MMbtu.
Ultralow-sulfur diesel for May decreased nearly 5¢ to a rounded $2.05/gal. The NYMEX reformulated gasoline blendstock for May fell 3¢ to a rounded $2.10/gal.
Brent crude for June was down $2.20 to settle at $72.15/bbl. The July price dropped $2/bbl to settle at $71.63/bbl.
The gas oil contract for May decreased $23 to $623.25/tonne on Apr. 25. The average for OPEC’s basket of crudes was $72.38, down $1.66 on Apr. 25.
Contact Paula Dittrick at [email protected].
About the Author
Paula Dittrick
Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.