MARKET WATCH: NYMEX, Brent crude benchmarks fall to end week

Benchmark crude oil prices declined on markets in New York and London on Mar. 8 following comments that officials from the US and China have yet to schedule a summit to resolve their trade dispute. Terry Branstad, US envoy to Beijing, said negotiators continue trying to work out differences, including details on enforcement of any eventual deal. While saying progress has been made in the ongoing trade talks, Branstad also said more progress is needed before a summit date is set.

Paula Dittrick

March 11, 2019

3 min read

Terry Branstad, US envoy to Beijing, said negotiators continue trying to work out differences, including details on enforcement of any eventual deal. While saying progress has been made in the ongoing trade talks, Branstad also said more progress is needed before a summit date is set.

“The market is concerned about the economic outlook and that’s weighing on risk assets,” said Giovanni Staunovo, UBS Wealth Management analyst. “There is a recession risk, which could hurt oil demand.”

Also last week, the European Central Bank cut its 2019 growth forecast to 1.1% from 1.7%. Previously, the Organization for Economic Cooperation and Development downgraded its growth forecasts for the G20.

Chinese government data said China’s February exports dropped 20.7% compared with the same time a year ago. Oil prices came under downward pressure because China’s export figures were weaker than expected, analysts said.

Separately, Baker Hughes reported the US drilling rig count is down 11 units to 1,027 rigs working for the week ended Mar. 8. The count is up 43 units from the 984 rigs working this time a year ago (OGJ Online, Mar. 8, 2019).

The International Energy Agency is scheduled Mar. 11 to release its annual oil market report for 2019 in Houston at the start of the CERAWeek conference.

The Organization of Petroleum Exporting Countries is scheduled to release its monthly oil market report on Mar. 14 and IEA releases its monthly report on Mar. 15.

Energy prices

The April contract for light, sweet crude oil on the New York Mercantile Exchange decreased 59¢ to settle at $56.07/bbl on Mar. 8. The contract for May delivery also fell 60¢ to settle at $56.43/bbl.

NYMEX natural gas for April edged down less than 1¢ to a rounded $2.86/MMbtu on Mar. 8.

Ultralow-sulfur diesel for April fell 1¢ to a rounded $2/gal. The NYMEX reformulated gasoline blendstock for April nudged down less than a penny to remain at a rounded $1.80/gal.

Brent crude for May delivery dropped 56¢ to $65.74/bbl while the June contract decreased 60¢ to settle at $65.66/bbl.

The gas oil contract for March was down $12 to $610.25/tonne on Mar. 8.

The average price for OPEC’s basket of crudes was $64.78/bbl on Mar. 8, up 79¢.

Contact Paula Dittrick at [email protected].

About the Author

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.