Brent crude oil for July gained modestly to settle for a second consecutive day above $70/bbl on the London market May 9, but light, sweet crude oil prices fell in New York to settle under $62/bbl.
US and China resumed trade talks May 9-10 in Washington, DC, while US President Donald Trump’s administration implemented new tariffs on Chinese imports, effective May 10.
Trump said US-China trade talks were continuing “in a very congenial manner—there is absolutely no need to rush.” The uncertainty about tariffs raised questions about oil demand.
Commerzbank analysts issued a note saying, “The concern is that a new round of punitive tariffs could slow oil demand in the two largest oil-consumer countries.”
Helima Croft, head of RBC Capital Markets commodity strategy, said, “The ongoing back-and-forth on US-China trade and whether a deal will be reached or if a tariff increase is issued has softened risk appetite.”
Energy prices
Crude oil on the New York Mercantile Exchange for June fell 42¢ to settle at $61.70/bbl on May 9 while the July contract dropped 41¢ to settle at $61.81/bbl.
NYMEX natural gas for June declined more than 1¢ to a rounded $2.60/MMbtu.
Ultralow-sulfur diesel for June fell 1¢ to a rounded $2.04/gal. The NYMEX reformulated gasoline blendstock for June edged up less than 1¢ to a rounded $1.97/gal.
Brent crude for July was up 2¢ to $70.39/bbl. The August price fell 14¢ to settle at $69.48/bbl.
The gas oil contract for May decreased $7 to $632.25/tonne on May 9.
The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $69.66/bbl on May 9, down 22¢.
Contact Paula Dittrick at [email protected].
