MARKET WATCH: NYMEX oil prices drop on US-China comments
Geopolitics sways oil prices July 17 with the light, sweet crude oil contract for August settling moderately lower at $56.78/bbl on the New York market following US President Donald Trump’s threat of imposing more tariffs on China.
Earlier in the week, Iran’s Foreign Minister Javad Zarif struck a conciliatory tone in an interview with NBC News. US Sec. of State Mike Pompeo told cabinet members in Washington, DC, that Iran had signaled an openness to talk about its nuclear program.
On July 16, oil prices dipped more than $2/bbl in London and New York as market participants took Pompeo’s comments as indications of easing US-Middle East tensions.
Regarding July 17 oil prices, Ole Hansen, head of commodity strategy for Saxo Bank, said, “It was President Trump’s threat to impose additional tariffs on Chinese imports which did most of the price damage. The risk of additional obstacles to global growth returned the focus to worries about demand.”
Energy prices
Light, sweet crude oil on the New York Mercantile Exchange for August delivery fell 84¢ to $56.78/bbl on July 17 while the September contract declined 82¢ to $56.92/bbl.
NYMEX natural gas for August edged down less than 1¢ to a rounded $2.30/MMbtu.
Ultralow-sulfur diesel for August dropped 1¢ to a rounded $1.89/gal. The NYMEX reformulated gasoline blendstock for August decreased 1¢ to a rounded $1.88/gal.
Brent crude for September was down 69¢ to $63.66/bbl. The October price decreased 65¢ to settle at $63.19/bbl.
The gas oil contract for August fell $17 to $583/tonne on July 17.
The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $64.60/bbl on July 17, down $1.53.
Contact Paula Dittrick at [email protected].
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.
