MARKET WATCH: NYMEX crude oil hold above $48/bbl pending rig count

The price of light, sweet crude oil for June delivery edged down on the New York market May 19, setting above $48/bbl. Analysts noted oil prices as of early trading on May 20 appeared likely to end the week higher.

Supply disruptions worldwide appeared to continue to support prices again. Wildfires in Alberta’s oil sands flared again recently, forcing more evacuations.

Forecasters said Canada can expect a warm summer. A hot and dry weather pattern is expected to continue across Alberta, worsening existing drought conditions, AccuWeather said.

“We do not expect any significant relief through the summer,” AccuWeather Senior Meteorologist Brett Anderson said. Much of Alberta faces a moderate to severe drought, including the cities of Calgary and Edmonton.

Separately, market observers also awaited the May 20 release of the weekly US rig count report from Baker Hughes Inc.

Energy prices

The June crude oil contract on the New York Mercantile Exchange declined 3¢ to settle at $48.16/bbl, and the July contract was down 11¢ to $48.67/bbl.

The NYMEX natural gas contract for June delivery rose nearly 4¢ to a rounded $2.04/MMbtu. Spot gas prices went the opposite direction. The Henry Hub price was $1.82/MMbtu, down 9¢.

Heating oil for June delivery fell less than a penny to remain at $1.48/gal. The price for reformulated gasoline stock for oxygenates blending for June fell 1.5¢ to a rounded $1.63/gal.

The Brent crude contract for July on London’s ICE was down 12¢ to $48.81/bbl. The August contract dropped 11¢ to $49.34/bbl. The June gas oil contract declined $14.25 to $429.50/tonne.

The Organization of Petroleum Exporting Countries basket of crudes price for May 19 was $43.84/bbl, down $1.04.

Contact Paula Dittrick at paulad@ogjonline.com.

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