Light, sweet crude oil for May delivery rose on the New York market to close above $52/bbl following a US airstrike in Syria. The US benchmark oil price had risen in eight of the nine trading sessions through Apr. 7.
Syria is a marginal oil producer, but analysts say the concern is possible retaliation against the US from Iran and Russia. Both of those nations have renewed their support to stand by Syria President Bashar al-Assad.
The Organization of Petroleum Exporting Countries will publish its monthly oil report Apr. 11 and the International Energy Agency will publish its monthly oil report Apr. 12. Analysts say oil prices would be supported by any indication from OPEC or IEA that the oil supply-demand balance is improving.
The US drilling rig count’s surge continued during the week ended Apr. 7 with another 15-unit increase, said Baker Hughes Inc.
At 829 rigs working, the count is up 443 units year-over-year and 425 units since the bottom of the drilling downturn on May 20-27, 2016 (OGJ Online, Apr. 7, 2017).
Energy prices
The crude oil contract for May delivery on the New York Mercantile Exchange gained 54¢ on Apr. 7 to close at $52.24/bbl, its highest closing since Mar. 7. The June contract rose 51¢ to $52.64/bbl.
The natural gas price for May dropped 7¢ to a rounded $3.26/MMbtu. The Henry Hub cash gas price closed Apr. 7 at $3.20/MMbtu, down 3¢.
Heating oil for May was up 1.5¢ to a rounded $1.63/gal. Reformulated gasoline stock for oxygenate blending for May rose 1.6¢ to a rounded $1.75/gal.
The Brent crude contract for June on London’s ICE gained 35¢ to $55.24/bbl, marking its highest settlement since Mar. 7. The July contract was up 36¢ to $55.53/bbl. The gas oil contract settled at $487.75/tonne, up $4.50.
The average price for OPEC’s basket of benchmark crudes on Apr. 7 was $52.91/bbl, up $1.09.
Contact Paula Dittrick at [email protected].
