MARKET WATCH: Brent crude oil breaks above $75/bbl
Brent crude oil rose above $75/bbl on the London market during Apr. 24 trading, its highest since 2014. The Apr. 23 settlement for Brent’s June contract was $74.71/bbl. Analysts attributed rising oil prices to uncertainty about possible sanctions against Iran.
Societe Generale analysts noted US President Donald Trump has a May 12 deadline to decide whether the US will continue to participate in an international agreement that lifted sanctions against Iran for its nuclear program. Trump has criticized the agreement.
“Many in the oil markets assume that oil sanctions will snap back on Iran,” Societe Generale analysts said. They forecast a 70% probability that US sanctions will be implemented, which could contribute to higher oil prices.
Giovanni Staunovo, UBS Wealth Management analyst, said that Brent might reach the $80/bbl level assuming Trump were to withdraw from the Iran deal. He added that it’s unclear how much volume might be lost as a result.
Societe Generale analysts also said they are watching Libya where Khalifa Haftar, head of the Libyan National Army, reportedly is in poor health. Any increased instability in Libya could disrupt crude oil production and exports, analysts said.
Energy prices
The May light, sweet crude contract on the NYMEX gained 24¢ on Apr. 23 to settle at $68.64/bbl. The June contract rose 29¢ to $68.47/bbl.
The NYMEX natural gas price for May gained 1¢ to $2.74/MMbtu. The Henry Hub cash gas price was $2.74 on Apr. 23, up 2¢.
Ultralow-sulfur diesel for May was up nearly 2¢ to a rounded $2.14/gal. The NYMEX reformulated gasoline blendstock for May rose nearly 3¢ to a rounded $2.12/gal.
Brent crude oil for June climbed 65¢ to settle at $74.71/bbl on London’s International Commodity Exchange. The July contract was up 66¢ to $74.01/bbl. The gas oil contract for May was $647.50/tonne, up $6.25.
The Organization of Petroleum Exporting Countries’ basket of crudes averaged $70.51/bbl on Apr. 23, up 15¢.
Contact Paula Dittrick at [email protected].
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.
