Light, sweet crude oil contracts for May and June delivery jumped more than $1/bbl on the New York market Mar. 26 on mixed signals about world oil supplies. The US Energy Information Administration was scheduled to release its weekly oil and products inventory on Mar. 27.
Russian Energy Minister Alexander Novak told reporters on Mar. 26 that Russia was on track to meet its 228,000 b/d production-cut target by Mar. 31.
“Crude oil prices surged after Russia claimed to be on track in meeting its pledged output cut,” ANZ analysts said in a research note.
The Organization of Petroleum Exporting Countries and some non-OPEC producers have scheduled a May 19 monitoring committee meeting in Jeddah, Saudi Arabia, S&P Global Platts reported.
A coalition of OPEC and non-OPEC producers plan to meet June 25-26 in Vienna, less than a week before the existing 1.2 million b/d production-cut agreement total is scheduled to expire.
Market participants also await developments regarding US oil sanctions on Venezuela and to see how US President Donald Trump will handle sanction waivers on countries buying Iranian oil. Those waivers are set to expire May 5.
Energy prices
The May contract for light, sweet crude oil on the New York Mercantile Exchange increased $1.12 to settle at $59.94/bbl on Mar. 26. The contract price for June delivery gained $1.02 to settle at $60.10/bbl.
NYMEX natural gas for April fell 1¢ to settle at $2.74/MMbtu.
Ultralow-sulfur diesel for April gained less than 1¢ to a rounded $1.99/gal. The NYMEX reformulated gasoline blendstock for April gained nearly 2¢ to a rounded $1.96/gal.
Brent crude for May delivery increased 76¢ to $67.97/bbl while the June contract increased 62¢ to settle at $67.43/bbl.
The gas oil contract for April rose $2 to $608.75/tonne on Mar. 26.
OPEC’s basket of crudes climbed 84¢ to average $67.03/bbl on Mar. 26.
Contact Paula Dittrick at [email protected].
