MARKET WATCH: Crude benchmark prices gain amid lingering economic woes

Light, sweet crude oil gained nearly $2 on the New York market Aug. 9 to settle above $54/bbl while Brent crude oil gained more than $1 to settle above $58/bbl in London. Analysts remain most focused on world economic concerns.

A slowing economy and edgy US-China trade relations continue threatening world oil demand growth this year, the International Energy Agency said. The agency and other groups appear to concentrate on economic concerns while acknowledging Middle East geopolitical tensions.

In its oil-market report, the IEA downgraded its oil-demand growth forecast for the third time in 4 months.

IEA’s latest forecast calls for oil-demand growth to reach 1.1 million b/d in 2019 and 1.3 million b/d in 2020. That marks a downward revision of 100,000 b/d for this year and 50,000 b/d for next year.

“Now, the situation is becoming even more uncertain: The US-China trade dispute remains unresolved and in September new tariffs are due to be imposed,” IEA said referring to tariffs US President Donald Trump recently announced against additional Chinese imports.

Separately, the International Monetary Fund downgraded its world domestic product growth forecast for 2019 by 0.1 of a percentage point to 3.2%.

For 7 consecutive months, the US Energy Information Administration has reduced its forecast for 2019 world oil consumption.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for September delivery gained $1.96 to settle at $54.50/bbl on Aug. 9 while the October contract rose $1.91 to $54.37/bbl.

The NYMEX natural gas price for September decreased less than 1¢ to a rounded $2.12/MMbtu.

Ultralow-sulfur diesel for September gained 3¢ to $1.80/gal. The NYMEX reformulated gasoline blendstock for September added nearly 3¢ to a rounded $1.67/gal.

Brent crude for October gained $1.15 to $58.53/bbl. The November contract also rose $1.15 to settle at $58.19/bbl.

Gas oil for August increased $12.75 to $555.50/tonne on Aug. 9.

The average for the Organization of Petroleum Exporting Countries’ basket of crudes for Aug. 9 was unavailable because the OPEC offices are closed through Aug. 13.

Contact Paula Dittrick at pdittrick@endeavorb2b.com.