MARKET WATCH: NYMEX oil prices climb after US targets Syria

Light, sweet crude oil for May delivery on the New York market rose 55¢ to settle at $51.70/bbl on Apr. 6. Oil prices traded sharply higher in New York and London overnight after reports the US launched a missile attack on Syria.
April 7, 2017
2 min read

Light, sweet crude oil for May delivery on the New York market rose 55¢ to settle at $51.70/bbl on Apr. 6. Oil prices traded sharply higher in New York and London overnight after reports the US launched a missile attack on Syria.

Two US warships in the Mediterranean Sea launched nearly 60 Tomahawk missiles late Apr. 6 in response to a chemical attack in Syria for which US officials blame the Syrian government although Syrian officials deny launching the strike.

Analysts said it’s too early to tell how long geopolitical tensions about Syria might influence oil prices.

“Syria isn’t a large oil producer but is located close to large oil-producing countries,” Michael Poulsen, oil risk manager at Global Risk Management in Copenhagen, told the Wall Street Journal. “Fears exist that unrest spreads to the neighboring countries, causing supply disruptions.”

Analysts on Apr. 7 also awaited release by Baker Hughes Inc. of the weekly US rig count, an indicator of future US oil production.

Energy prices

The crude oil contract for May delivery on the New York Mercantile Exchange gained 55¢ on Apr. 6 to close at $51.70/bbl while the June contract rose 53¢ to $52.13/bbl.

The natural gas price for May gained 6¢ to a rounded $3.33/MMbtu. The Henry Hub cash gas price closed Apr. 6 at $3.23/MMbtu, up 2¢.

Heating oil for May was up nearly 1¢ to $1.61/gal. Reformulated gasoline stock for oxygenate blending for May rose 1.4¢ to a rounded $1.73/gal.

The Brent crude contract for June on London’s ICE gained 53¢ to $54.89/bbl. The July contract was up by 54¢ to $55.17/bbl. The gas oil contract settled at $483.25/tonne, up $2.25.

The average price for the Organization of Petroleum Exporting Countries’ basket of benchmark crudes on Apr. 6 was $51.82/bbl, down 13¢.

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.

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