Oil prices rose on markets in New York and London Apr. 25 amid expectations of possible new US sanctions against Iran, declining Venezuela oil production, and robust world oil demand, particularly in Asia.
US President Donald Trump is expected to decide by May 12 on whether to maintain US participation in an international agreement that lifted previous Western sanctions against Iran related to its nuclear program.
Trump repeatedly has criticized the agreement. Any new sanctions are likely to reduce Iran’s oil exports and slow its oil production growth.
Separately, the US Energy Information Administration reported crude oil inventories, excluding the Strategic Petroleum Reserve, increased 2.2 million bbl for the week ended Apr. 20 to 429.7 million bbl, putting oil in storage in the lower half of the average range for this time of year (OGJ Online, Apr. 25, 2018).
The Weekly Petroleum Status Report showed US oil production was 10.586 million b/d for the week ended Apr. 20, up 46,000 b/d from the previous week.
The May light, sweet crude contract on the NYMEX gained 35¢ on Apr. 25 to settle at $68.05/bbl. The June contract also rose 35¢ to $67.92/bbl.
The NYMEX natural gas price for May edged up less than a penny to a rounded $2.79/MMbtu. The Henry Hub cash gas price was $2.79/MMbtu on Apr. 25, up 2¢.
Ultralow-sulfur diesel for May was up by less than 1¢ to a rounded $2.14/gal. The NYMEX reformulated gasoline blendstock for May fell less than a penny to remain at a rounded $2.09/gal.
Brent crude oil for June increased 14¢ to settle at $74/bbl on London’s International Commodity Exchange. The July contract was up 16¢ to $73.23/bbl. The gas oil contract for May was $648/tonne, down $10.75.
The Organization of Petroleum Exporting Countries’ basket of crudes averaged $70.50/bbl on Apr. 25, down 84¢.
Contact Paula Dittrick at [email protected].