The light, sweet crude oil contract for April climbed more than $1/bbl on the New York market Mar. 5 to settle above $62/bbl while Brent crude for May rose more than $1/bbl to settle above $65/bbl after the International Energy Agency forecast robust world crude oil demand.
The IEA report said oil demand is unlikely to peak in the next 5 years. The Paris-based group forecast world demand will exceed 100 million b/d next year.
Boosted by economic growth in Asia and a resurgent US petrochemical industry, world oil demand will increase by 6.9 million b/d by 2023 to 104.7 million b/d, IEA said (OGJ Online, Mar. 5, 2018).
US shale production is a key topic as thousands of oil and gas executives meet in Houston this week where some members of the Organization of Petroleum Exporting Countries had meetings with US producers to discuss unconventional production.
The chief executive officer of Saudi Aramco was scheduled to speak at CERAWeek by IHS Markit event in Houston on Mar. 6.
Oil production growth is expected in non-OPEC countries, particularly US, Brazil, Canada, and Norway through 2023.
US shale production will account for most of the oil output increase in the next 5 years, Fatih Birol, International Energy Agency executive director, told reporters at a Mar. 5 news conference at CERAWeek.
“A second major wave of US shale production is coming,” Birol said, which he attributed to higher oil prices (OGJ Online, Mar. 5, 2018).
Energy prices
The April light, sweet crude contract on the NYMEX gained $1.32 on Mar. 6 to settle at $62.57/bbl. The May contract rose $1.30 to $62.39/bbl.
The NYMEX natural gas price for April rose by less than 1¢ to remain at a rounded $2.70/MMbtu. The Henry Hub cash gas price was up 4¢ to $2.67/MMbtu on Mar. 5.
Ultralow-sulfur diesel for April increased by nearly 2¢ to a rounded $1.90/gal. The NYMEX reformulated gasoline blendstock for April rose 3¢ to $1.93/gal.
Brent crude oil for May settled up $1.17 to $65.54/bbl on London’s International Commodity Exchange. The June contract was up $1.19 to $65.30/bbl. The gas oil contract for March was $572/tonne, up $8.75.
OPEC’s basket of crudes was $62.89/bbl on Mar. 6, up $1.31.
Contact Paula Dittrick at [email protected].
