MARKET WATCH: NYMEX, Brent crude oil prices gain modestly
Light, sweet crude oil for June delivery gained slightly on the New York market Apr. 28 as did Brent crude oil on the London market.
Brent ended down $1.10, or 2.1%, for April, its fourth consecutive losing month, which analysts called the worst such stretch since early 2016. Analysts noted that increasing US oil production has many investors worried about a lingering world oil oversupply.
The US rig count increased by 13 to 870 for the week ended Apr. 28, said Baker Hughes Inc. in its weekly tally of active rigs. The count total was at its highest point since Aug. 28, 2015 (OGJ Online, Apr. 28, 2017).
On world oil markets, Saudi Arabia officials are advocating an extension of existing production-cut targets but some producers want to increase output. Iraq Oil Minister Jabbar al-Luaibi has said his country wants to be able to produce more.
Commerzbank said, “Iran is demanding that it be allowed to significantly increase its oil production.”
TD Securities analysts in Toronto issued an Apr. 28 research note saying, “Prices will be range-bound for the most of May—but volatile.”
Bart Melek, head of TD’s commodity strategy, expects oil prices “will test the lower bound on negative news and bounce higher on any hope that producers’ supply adjustments will continue for the balance of the year.”
The Organization of Petroleum Exporting Countries and non-OPEC countries collectively agreed to production-cut targets of 1.8 million b/d total for 6 months, starting in January. OPEC plans to consider whether to extend those production-cut targets when the cartel meets in Vienna on May 25.
Energy prices
The light, sweet contract for June crude oil delivery gained 36¢ on Apr. 28 to close at $49.33/bbl on the New York Mercantile Exchange. The July contract gained 31¢ to settle at $49.62.
The natural gas price for June increased 3.7¢ to a rounded $3.28/MMbtu. The Henry Hub cash gas price was unavailable for Apr. 28.
Heating oil for May dropped less than a penny to settle at $1.50/gal. Reformulated gasoline stock for oxygenate blending for May also edged down less than 1¢ to remain at a rounded $1.55/gal. The May contracts for both gasoline and diesel expired with the end of the Apr. 28 trading session.
The Brent crude contract for June on London’s ICE gained 29¢ to settle at $51.73/bbl. The July contract added 23¢ to $52.05/bbl. The May gas oil contract gained $2.75 to $454/tonne.
OPEC’s basket of crudes was unavailable for Apr. 29.
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.