MARKET WATCH: Brent crude prices approaching $72/bbl

Brent crude oil prices on the London market gained more than 50¢ to settle at $71.72/bbl on Apr. 16 and continued rising Apr. 17 in early trading on concerns about tightening world oil supplies. Crude oil supplies have declined this year with US sanctions on Venezuela and Iran. Meanwhile, major producers, including Russia, also are holding back production.

Apr 17th, 2019

Brent crude oil prices on the London market gained more than 50¢ to settle at $71.72/bbl on Apr. 16 and continued rising Apr. 17 in early trading on concerns about tightening world oil supplies.

Crude oil supplies have declined this year with US sanctions on Venezuela and Iran (OGJ Online, Apr. 16, 2019). Meanwhile, major producers, including Russia, also are holding back production.

Those producers in June will review an agreement between the Organization of the Petroleum Exporting Countries and some non-OPEC producers, including Russia, to limit production by 1.2 million b/d. Those production-cut targets started in January.

A Gazprom Neft official told reporters in Russia on Apr. 16 that he expects the oil-production targets by OPEC and its allies will end.

Vadim Yakovlev, Gazprom Neft first deputy chief executive officer, suggested the oil producers ought to keep their alliance intact to help coordinate efforts among the world’s top oil producers.

Reuters reported Yakovlev’s comments, which he made in the Russian Arctic town of Salekhard.

Meanwhile, the US Energy Information Administration was scheduled later Apr. 17 to release its weekly oil and products report. Separately, the American Petroleum Institute said its statistics show US crude inventories fell by 3.1 million bbl for the week ended Apr. 12 to 452.7 million bbl.

Energy prices

The May contract for light, sweet crude oil on the New York Mercantile Exchange gained 65¢ to settle at $64.05/bbl on Apr. 16. The price for June delivery was up 63¢ to settle at $64.19/bbl.

NYMEX natural gas for May dropped nearly 2¢ to $2.57/MMbtu.

Ultralow-sulfur diesel for May gained 2¢ to a rounded $2.08/gal. The NYMEX reformulated gasoline blendstock for May also increased 2¢ to settle at $2.03/gal.

Brent crude for June rose 54¢ to settle at $71.72/bbl. The July price gained 47¢ to settle at $71.21/bbl.

The gas oil contract for May increased $3.75 to $633.50/tonne on Apr. 16.

OPEC’s basket of crudes for Apr. 16 was $70.11/bbl, down 10¢.

Contact Paula Dittrick at paulad@ogjonline.com.

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