MARKET WATCH: NYMEX crude oil prices gain slightly, staying around $54/bbl

Light, sweet crude oil prices for April gained slightly on the New York market Feb. 27, remaining within a trading range of recent weeks, settling at $54.05/bbl. Brent crude oil on the London market almost broke above $57/bbl on Feb. 27 before slipping to settle at $55.93/bbl.

Brent’s April contract expires on Mar. 1. Commerzbank analysts said they were surprised Brent crude prices have not yet reached $60/bbl.

Russian news agency Tass reported Russia’s production fell 117,000 bbl in February, which likely would support increased oil prices.

Production cuts by the Organization of Petroleum Exporting Countries and other major producers have kept prices from falling below $50/bbl, but analysts say increasing US production has limited price gains.

“With the prospect of OPEC extending the current cuts even longer, we would expect to see prices continue to push higher from here,” ANZ said in a note.

Energy prices

The crude oil contract for April delivery on the New York Mercantile Exchange rose 6¢ on Feb. 28 to $54.05/bbl. The May contract was up 10¢ to $54.42/bbl.

The natural gas price for April settled at a rounded $2.69/MMbtu, down 1¢. The cash gas price at the Henry Hub in Cushing, Okla., closed at $2.44/MMbtu, down 5¢.

Heating oil for March declined less than a penny to remain at a rounded $1.64/gal. Reformulated gasoline stock for oxygenate blending for March rose nearly 2¢ to a rounded $1.53/gal.

The Brent crude contract for April on London’s ICE was down 6¢ to $55.93/bbl. The Brent May contract gained 11¢ to $56.42/bbl. Gas oil for March closed at $497.25/tonne, up $2.75.

The average price for OPEC’s basket of benchmark crudes on Feb. 27 was $53.85/bbl, up 24¢.

Contact Paula Dittrick at paulad@ogjonline.com.