MARKET WATCH: Crude oil prices end Feb. 22 above 3-month high
Light, sweet crude oil for April delivery on the New York Mercantile Exchange rose 30¢ to close at $57.26/bbl on Feb. 22, the front-month’s highest close since Nov. 12, 2018. Brent crude prices edged higher in London to close at $67.12/bbl, Brent’s highest settlement since Nov. 12.
Ole Hansen, Saxo Bank head of commodity strategy, said, “Global markets from stocks to corporate bonds and commodities have experienced strong performance in recent weeks on upbeat comments from US and Chinese trade negotiators.”
Hansen added, “The latest string of trade-talk headlines has raised hopes of a market friendly US-China trade deal.”
A deadline of Mar. 1 was imposed by US President Donald Trump’s administration for a trade agreement, although there has been some talk that the deadline could be extended.
Meanwhile, crude oil prices moved higher on a combination of trade optimism and oil supply cuts from the Organization of Petroleum Exporting Countries and others, including Russia.
“Against this, a surge in US crude oil production to 12 million b/d attracted plenty of headlines but limited market reaction,” Hansen said.
Energy prices
The April contract for light, sweet crude oil on the New York Mercantile Exchange gained 30¢ to settle at $57.26/bbl on Feb. 22. The contract for May delivery increased 29¢ to settle at $57.75/bbl.
NYMEX natural gas for March gained 2¢ to a rounded $2.72/MMbtu on Feb. 22.
Ultralow-sulfur diesel for March edged down less than a penny to a rounded $2.03/gal. The NYMEX reformulated gasoline blendstock for March decreased less than 1¢ to remain at a rounded $1.61/gal.
Brent crude for April delivery gained 5¢ to settle at $67.12/bbl while the May contract gained 6¢ to settle at $67.25/bbl. The gas oil contract for March rose $1 to $622/tonne on Feb. 22.
The average price for the Organization of Petroleum Exporting Countries’ basket of crudes was $66.56/bbl on Feb.22, up 6¢.
Contact Paula Dittrick at [email protected].
About the Author
Paula Dittrick
Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.