MARKET WATCH: Crude benchmarks jump more than $1 on Middle East tensions

Crude oil benchmarks jumped by more than $1 on New York and London markets on Aug. 19 following news of an Aug. 17 drone attack on Saudi oil field Shaybah by Yemen’s Houthi rebels who acknowledged they targeted the field.

Crude oil benchmarks jumped by more than $1 on New York and London markets on Aug. 19 following news of an Aug. 17 drone attack on Saudi oil field Shaybah by Yemen’s Houthi rebels who acknowledged they targeted the field.

Saudi Aramco, the operator, extinguished a fire to a gas processing plant and reported no disruptions to production.

Giovanni Staunovo, UBS analysts, said, “The oil market seems to be pricing in again a geopolitical risk premium following the weekend drone attacks on Saudi Arabia,” but added that the premium might not be sustainable without any supply disruptions.

Carsten Fritch, Commerzbank analyst, said, “Though oil production there has not been affected, this nonetheless puts the spotlight once again on the supply risks in the Middle East.”

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for September delivery gained $1.34 to $56.21/bbl on Aug. 19 while the October contract increased $1.33 to $56.14/bbl.

The NYMEX natural gas price for September rose 1¢ to a rounded $2.21/MMbtu.

Ultralow-sulfur diesel for September rose 2¢ to $1.83/gal. The NYMEX reformulated gasoline blendstock for September increased nearly 1¢ to a rounded $1.66/gal.

Brent crude for October increased $1.10 to $59.74/bbl. The November contract gained $1.06 to settle at $59.22/bbl.

Gas oil for September increased $1.50 to $561/tonne on Aug. 17.

The average for the Organization of Petroleum Exporting Countries’ basket of crudes for Aug. 19 was $59.56, up 43¢.

Contact Paula Dittrick at pdittrick@endeavorb2b.com.

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