MARKET WATCH: Crude benchmarks jump more than $1 on Middle East tensions
Crude oil benchmarks jumped by more than $1 on New York and London markets on Aug. 19 following news of an Aug. 17 drone attack on Saudi oil field Shaybah by Yemen’s Houthi rebels who acknowledged they targeted the field.
Saudi Aramco, the operator, extinguished a fire to a gas processing plant and reported no disruptions to production.
Giovanni Staunovo, UBS analysts, said, “The oil market seems to be pricing in again a geopolitical risk premium following the weekend drone attacks on Saudi Arabia,” but added that the premium might not be sustainable without any supply disruptions.
Carsten Fritch, Commerzbank analyst, said, “Though oil production there has not been affected, this nonetheless puts the spotlight once again on the supply risks in the Middle East.”
Energy prices
Light, sweet crude oil on the New York Mercantile Exchange for September delivery gained $1.34 to $56.21/bbl on Aug. 19 while the October contract increased $1.33 to $56.14/bbl.
The NYMEX natural gas price for September rose 1¢ to a rounded $2.21/MMbtu.
Ultralow-sulfur diesel for September rose 2¢ to $1.83/gal. The NYMEX reformulated gasoline blendstock for September increased nearly 1¢ to a rounded $1.66/gal.
Brent crude for October increased $1.10 to $59.74/bbl. The November contract gained $1.06 to settle at $59.22/bbl.
Gas oil for September increased $1.50 to $561/tonne on Aug. 17.
The average for the Organization of Petroleum Exporting Countries’ basket of crudes for Aug. 19 was $59.56, up 43¢.
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.
