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.

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 pdittrick@endeavorb2b.com.

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