MARKET WATCH: Oil prices dip on US-Iran comments

Crude oil benchmark prices fell about $2/bbl on both New York and London markets July 16 after US President Donald Trump said progress has been made in US relations with Iran, which market participants took as a sign of easing tensions in the Mideast.

Brent crude futures settled under $63.86/bbl after reaching a trading session high of $67.09/bbl on the London market. Light, sweet crude futures settled just above $57/bbl on the New York market after reaching a trading session high of $60.06/bbl earlier on July 16.

Trump talked about Iran during a cabinet meeting in Washington, DC, but did not outline specifics. During that meeting, US Sec. of State Mike Pompeo said Iran had indicated it was prepared to negotiate about its missile program.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for August delivery dipped $1.96 to $57.62/bbl on July 16 while the September contract dropped $1.94 to $57.74/bbl.

NYMEX natural gas for August decreased 10¢ to a rounded $2.31/MMbtu.

Ultralow-sulfur diesel for August dropped nearly 5¢ to a rounded $1.90/gal. The NYMEX reformulated gasoline blendstock for August decreased nearly 4¢ to a rounded $1.89/gal.

Brent crude for September tumbled $2.13 to $66.35/bbl. The October price decreased $2.08 to settle at $63.84/bbl.

The gas oil contract for August fell 50¢ to $600/tonne on July 16.

The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $66.13/bbl on July 16, down 66¢.

Contact Paula Dittrick at pdittrick@endeavorb2b.com.