The light, sweet crude oil prices wavered between gains and losses on the New York market Apr. 13, settling slightly higher at nearly $53.20/bbl before the Holy Week holiday. US markets were closed Apr. 14. Brent crude for June delivery settled at nearly $55.90/bbl on the London market Apr. 13.
“We might be witnessing the market starting to approach the upper band of a trading range, up near $55[/bbl],” Gene McGillian, Tradition Energy research manager, told the Wall Street Journal. “From this point on, it’s going to be tougher sledding to drive the market higher,” unless the Organization of Petroleum Exporting Countries agrees to extend production-cut targets.
The cartel will decide whether to extend current production levels at a May 25 meeting. Meanwhile, analysts say rising US oil production could undermine OPEC’s production cuts.
Baker Hughes Inc. reported the weekly rig count climbed by 8 units to reach a total 847 rigs for the week ended Apr. 13, shortened by a day by the Good Friday holiday (OGJ Online, Apr. 13, 2017).
Energy prices
The crude oil contract for May delivery on the New York Mercantile Exchange gained 7¢ on Apr. 13 to close at $53.18/bbl. The June contract rose 8¢ to $53.60/bbl.
The natural gas price for May rose 4¢ to a rounded $3.23/MMbtu. The Henry Hub cash gas price closed Apr. 13 at $2.98/MMbtu, down 1¢.
Heating oil for May was down less than 1¢ to remain at a rounded $1.65/gal. Reformulated gasoline stock for oxygenate blending for May fell less than a penny to remain at a rounded $1.74/gal.
The Brent crude contract for June on London’s ICE edged up 3¢ to $55.89/bbl. The July contract was up 7¢ to $56.37/bbl. The gas oil contract for May was down 50¢ at $498.00/tonne.
The average price for OPEC’s basket of benchmark crudes on Apr. 13 was unavailable because OPEC’s offices were closed.
Contact Paula Dittrick at [email protected].
