Light, sweet crude oil prices for August and September contracts gained on the New York market June 24 to approach $58/bbl while Brent crude oil prices for August and September contracts fell in London, settling under $65/bbl.
“Broadly, there are two issues that can stimulate demand,” Martijn Rats, Morgan Stanley global oil strategist and head of European oil and gas equity research, recently said. “One is trade tensions resolving, and one is further policy responses to a weakening global economy in [the] US or China.”
Rats’ comments came before the latest US sanctions against Iran. Iran officials on June 25 warned that new US sanctions targeting its supreme leader and other top officials meant “closing the doors of diplomacy” between the two countries.
Iranian President Hassan Rouhani called the sanctions against Supreme Leader Ayatollah Ali Khamenei “outrageous and idiotic,” especially since the 80-year-old Shiite cleric has no US travel plans.
US President Donald Trump enacted new sanctions against Khamenei and his associates on June 24. US officials blame Iran for a June 20 downing of a US surveillance drone, worth over $100 million, above the Strait of Hormuz.
Energy prices
Light, sweet crude oil on the New York Mercantile Exchange for July delivery gained 47¢ to $57.90/bbl on June 24 while the August contract climbed 43¢ to settle at $57.93/bbl.
NYMEX natural gas for July gained 11¢ to a rounded $2.30/MMbtu.
Ultralow-sulfur diesel for July fell a fraction of 1¢ to a rounded $1.91/gal. The NYMEX reformulated gasoline blendstock for July declined 1¢ to a rounded $1.85/gal.
Brent crude for August dropped 34¢ to $64.86/bbl. The September price decreased 27¢ to settle at $64.18/bbl.
The gas oil contract for July fell $7.25 to $579.75/tonne on June 24.
The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $65.05/bbl on June 24, down 24¢ from the previous day.
Contact Paula Dittrick at [email protected].
