Front-month prices for light, sweet oil for July and August delivery fell more than $3 to settle below $54/bbl on the New York market May 31 while Brent prices for the August delivery contract also dropped more than $3 to below $62/bbl amid additional tariff concerns.
US President Donald Trump on May 30 said the US would implement a tariff—starting at 5% and potentially moving to 25%—on all goods imported from Mexico starting June 10 to put pressure on the country to address the “illegal migration crisis.”
Separately, US-China trade tensions continue to put pressure on oil prices as talks continue to move away from resolution, possibly limiting future oil demand.
Energy prices
Crude oil on the New York Mercantile Exchange for July fell $3.09 to settle at $53.50/bbl on May 31 while the August contract dropped $3.10 to settle at $53.64/bbl.
NYMEX natural gas for July fell 9¢ to settle at $2.45/MMbtu.
Ultralow-sulfur diesel for June declined 7¢ to $1.84/gal. The NYMEX reformulated gasoline blendstock for June fell a rounded 8¢ to $1.80/gal.
Brent crude for July remained unchanged at $66.87/bbl. The August price decreased $3.34 to settle at $61.99/bbl.
The gas oil contract for June fell $20.50 to $577.50/tonne on May 31.
The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $64.15/bbl on May 31, down $2.95.
