MARKET WATCH: Crude oil prices rise on US rig count

May 29, 2019
Oil prices climbed May 28 for a second trading session with light, sweet crude oil for both the July and August contracts settling above $59/bbl as traders returned after a long Memorial Day weekend.

Oil prices climbed May 28 for a second trading session with light, sweet crude oil for both the July and August contracts settling above $59/bbl as traders returned after a long Memorial Day weekend.

Oil prices rose after Baker Hughes reported the US drilling rig count fell 4 units to 983 rigs working for the week ended May 24. The count is down 76 units from the 1,059 rigs working this time a year ago (OGJ Online, May 24, 2018).

US oil-directed rigs dropped 5 units to 797 working for the week ended May 24, down from the 859 rigs drilling for oil this week a year ago. The rig count for oil was the lowest since March 2018.

Meanwhile, US-Iran tensions continue. During the weekend, top Iranian officials said they do not want war, but also said they are prepared to respond to a possible US confrontation.

US President Donald Trump said May 24 that he was sending more troops to the Middle East. News reports on May 24 said Trump’s administration also moved to push through weapons sales to Iran’s rivals Saudi Arabia and United Arab Emirates.

Energy prices

Crude oil on the New York Mercantile Exchange for July rose 51¢ to settle at $59.14/bbl on May 28 while the August contract gained 64¢ to settle at $59.35/bbl.

NYMEX natural gas for June fell by a rounded 2¢ to settle at $2.58/MMbtu.

Ultralow-sulfur diesel for June gained 2¢ to $1.99/gal. The NYMEX reformulated gasoline blendstock for June gained 2¢ to a rounded $1.96/gal.

Brent crude for July was up $1.42 to $70.11/bbl. The August price increased $1.20 to settle at $68.67/bbl.

The gas oil contract for June rose $14 to $618.75/tonne on May 28.

The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $68.34/bbl on May 28, up 92¢.

Contact Paula Dittrick at [email protected].