The light, sweet oil contract for April dropped modestly on the New York market Mar. 19 to settle just above $62/bbl. Meanwhile in London, the Brent crude oil for May delivery dropped slightly to settle just above $66/bbl. But oil prices increased in early Mar. 20 trading.
Oil investors are watching Saudi Arabia this week. Saudi Foreign Minister Adel al-Jubeir called the existing international Iran nuclear deal a “flawed agreement,” only hours before US President Donald Trump met with Saudi Crown Prince Mohammad bin Salman in Washington, DC.
The Saudi’s US visit comes as the nation’s leadership scales back its plans for an initial public offering of Saudi Aramco. The listing, which had been expected to raise as much as $100 billion this year, reportedly has been delayed until 2019.
“Without the pressure of the IPO, Saudi Arabia may have less incentive to continue restricting its oil output by more than the required amount, as it has been doing so far,” Commerzbank analysts said in a Mar. 20 research note.
Rising political tensions between Saudi Arabia and Iran support crude oil prices. Both are members of the Organization of Petroleum Exporting Countries. The Trump administration has suggested reimposing economic sanctions on Iran, reducing its oil exports.
Energy prices
The April light, sweet crude contract on the NYMEX dropped 28¢ on Mar. 19 to settle at $62.06/bbl. The May contract fell 28¢ to $62.13/bbl.
The NYMEX natural gas price for April declined by a rounded 4¢ to $2.65/MMbtu. The Henry Hub cash gas price gained 2¢ to $2.63/MMbtu on Mar. 19.
Ultralow-sulfur diesel for April edged down by less than 1¢ to remain at a rounded $1.91/gal. The NYMEX reformulated gasoline blendstock for April dropped 2¢ to $1.92/gal.
Brent crude oil for May decreased 16¢ to $66.05/bbl on London’s International Commodity Exchange. The June contract was down 23¢ to $65.48/bbl. The gas oil contract for April was $584.75/tonne, up $4.25.
OPEC’s basket of crudes was $63.31/bbl on Mar. 19, up 57¢.
Contact Paula Dittrick at [email protected].
