MARKET WATCH: NYMEX crude oil settles above $59/bbl
Light, sweet crude oil for April delivery settled above $59/bbl, setting a 4-month record high Mar. 18 after the Organization of Petroleum Exporting Countries and other major producers discussed continuing current oil-production cuts through June.
Meeting in Baku, OPEC and non-OPEC representatives reached a consensus to maintain production cuts and canceled an April meeting, Saudi Energy Minister Khalid al-Falih said Mar. 18.
Before that meeting, al-Falih commented that oil production from Venezuela and Iran has not fallen as much as expected despite US sanctions against those nations.
Sara Vakhshouri of SVB Energy International in Washington, DC, said, “This is a clear message to the US administration that OPEC will not increase its production unless there are actual signs that Iran and Venezuela’s production are going to be cut. US waivers for Iran oil imports will expire in early May. Unless OPEC members know how much exactly these waivers are going to impact Iran’s oil exports, they won’t plan to increase their production.”
Iran’s crude oil production capacity—not actual production—has increased because of completion of some West Karun fields, Vakhshouri said.
Condensation production capacity also has increased with the recent start of four phases in the South Pars gas field. Phases 13 and 22-24 have production capacities of 56 million cu m/day, 75,000 b/d of condensate, and 400 tonnes/day of sulfur each. The start-ups bring to 22 the number of operational South Pars phases (OGJ Online, Mar. 18, 2019).
Energy prices
The April contract for light, sweet crude oil on the New York Mercantile Exchange increased 57¢ to settle at $59.09/bbl on Mar. 18. The contract for May delivery rose 56¢ to settle at $59.38/bbl.
NYMEX natural gas for April gained 5¢ to settle at $2.85/MMbtu.
Ultralow-sulfur diesel for April nudged up less than 1¢ to remain at a rounded $1.97/gal. The NYMEX reformulated gasoline blendstock for April gained nearly 3¢ to $1.88/gal.
Brent crude for May delivery increased 38¢ to $67.54/bbl while the June contract increased 32¢ to settle at $67.36/bbl.
The gas oil contract for April fell $1.75 to $605/tonne on Mar. 18.
The average price for OPEC’s basket of crudes was $66.87/bbl on Mar. 19, down 4¢.
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.
