MARKET WATCH: Benchmarks gain moderately to end volatile week

Crude oil benchmark prices gained moderately on New York and London markets July 5 with the light, sweet contract for September closing at $57.59/bbl and the Brent contract for September closing above $64/bbl.

Ole Hansen, head of commodity strategy for Saxo Bank, notes most commodities failed to hold onto price gains that followed the G-20 meeting in Osaka, Japan.

During a July 4 US holiday-shortened week, energy and other commodities initially reacted positively to renewed hopes of renewed US-China trade negotiations.

But Hansen notes it was, “A relief that was soon overtaken by a return to reality when weak economic data from Asia to Europe and the US continued to highlight the risks to the global economy and with that demand for key commodities from oil to industrial metals.”

The volatile week ended with a stronger-than-expected US job growth report for June, which Hansen said potentially eases calls for a US Federal Reserve rate cut on July 31.

“Crude oil jumped only to slump as demand growth concerns overshadowed a 9 months extension of the OPEC+ agreement to curb supply,” Hansen said following meetings of the Organization of Petroleum Exporting Countries and other major producers, including Russia.   

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for August delivery rose 17¢ to $57.51/bbl on July 5 while the September contract increased 15¢ to $57.59/bbl.

NYMEX natural gas for August climbed nearly 13¢ to a rounded $2.42/MMbtu.  

Ultralow-sulfur diesel for August added 6¢ to $1.90/gal. The NYMEX reformulated gasoline blendstock for August increased 1¢ to a rounded $1.93/gal.

Brent crude for September gained 41¢ to $64.23. The October price increased 33¢ to settle at $63.84/bbl. 

The gas oil contract for July gained $3 to $576.75/tonne on July 5. The average for OPEC’s basket of crudes was $63.55/bbl on July 5, up 10¢. 

Contact Paula Dittrick at pdittrick@endeavorb2b.com.