Crude oil futures prices gained modestly on New York and London markets Mar. 4 amid growing optimism that US-China trade talks are nearing an agreement on tariff disputes, which could ease tensions between the two nations.
The trade talks have added uncertainty to commodity markets for months, raising concern about world economic growth and the pace of world oil demand.
Separately, Libya’s National Oil Corp. said it lifted a force majeure on operations at El Sharara oil field and was in the process of restarting production on Mar. 4. The Libyan National Army, led by Khalifa Haftar, took control of the field about 3 weeks ago.
Plans are also in place to repair lost-production capacity destroyed by looting and vandalism, NOC said.
El Sharara can produce 300,000 b/d of oil. A resumption in production could enable Libya to boost production to more than 1 million b/d for the first time since December 2018 (OGJ Online, Jan. 25, 2019).
“NOC has received assurances that site security has been restored, verified by our own inspection team, enabling staff to return to work,” NOC Chairman Mustafa Sanalla said.
Energy prices
The April contract for light, sweet crude oil on the New York Mercantile Exchange gained 79¢ to settle at $56.59/bbl on Mar. 4. The contract for May delivery rose 78¢ to settle at $56.97/bbl.
NYMEX natural gas for April fell less than 1¢ to remain at a rounded $2.86/MMbtu on Mar. 4.
Ultralow-sulfur diesel for April increased 1¢ to $2.01/gal. The NYMEX reformulated gasoline blendstock for April gained nearly 2¢ to a rounded $1.75/gal.
Brent crude for May delivery gained 60¢ to $65.67/bbl while the June contract increased 63¢ to settle at $65.74/bbl.
The gas oil contract for March rose $8.25 to $622.75/tonne on Mar. 4.
The average price for the Organization of Petroleum Exporting Countries’ basket of crudes was $64.86/bbl on Mar. 4, down 46¢.
Contact Paula Dittrick at [email protected].
