MARKET WATCH: NYMEX crude oil price holds above $63/bbl

The light, sweet crude oil price for May declined slightly on the New York market Apr. 4 as traders and analysts monitored ongoing US-Chinese trade tensions, but crude prices started gaining upward momentum after a weekly government report showed US crude supplies fell.

The light, sweet crude oil price for May declined slightly on the New York market Apr. 4 as traders and analysts monitored ongoing US-Chinese trade tensions, but crude prices started gaining upward momentum after a weekly government report showed US crude supplies fell.

Crude oil inventories, excluding the Strategic Petroleum Reserve, declined by an estimated 4.6 million bbl for the week ended Mar. 30, the US Energy Information Administration reported.

It was the biggest decline for a single week since January. The latest total was 425.3 million bbl, which EIA called the lower half of the average range for this time of year (OGJ Online, Apr. 5, 2018).

The Weekly Petroleum Status Report showed US oil production climbed 27,000 b/d for the week ended Mar. 30 to 10.46 million b/d. Production across the Lower 48 rose 25,000 to 9.94 million b/d while Alaska production was 518,000 b/d, up 2,000 b/d for the week.

Regarding US-China tensions, Commerzbank analysts issued a research note Apr. 5 saying they believe oil prices “are profiting from the general brightening of sentiment on the markets as signs emerge that the trade dispute is easing.”

Energy prices

The May light, sweet crude contract on the NYMEX fell 14¢ on Apr. 4 to settle at $63.37/bbl. The June contract dropped 13¢ to $63.33/bbl.

The NYMEX natural gas price for May increased less than 1¢ to a rounded $2.71/MMbtu. The Henry Hub cash gas price gained 7¢ to $2.77/MMbtu on Apr. 4.

Ultralow-sulfur diesel for May decreased 1.7¢ to a rounded $1.98/gal. The NYMEX reformulated gasoline blendstock for May edged up less than 1¢ to remain at a rounded $1.97/gal.

Brent crude oil for June fell 10¢ to $68.02/bbl on London’s International Commodity Exchange. The July contract dropped 12¢ to $67.55/bbl. The gas oil contract for April was $609/tonne, down $4.

The Organization of Petroleum Exporting Countries’ basket of crudes was $64.48/bbl, down 50¢.

Contact Paula Dittrick at paulad@ogjonline.com.

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