MARKET WATCH: NYMEX oil prices settle under $48/bbl, Brent under $50/bbl

Light, sweet crude oil prices dropped 70¢ on New York market to settle below $48/bbl June 2 while the Brent crude oil price for August delivery fell by more than 80¢ on the London market to settle under $50/bbl.

Oil prices rose in early trading on June 5 after Saudi Arabia and three other countries cut diplomatic ties with Qatar. Oil traders are sensitive to Middle East tensions because they worry about possible oil supply disruptions.

Qatar is a small producer compared with its neighbors. Egypt, Bahrain, and the UAE joined Saudi Arabia in cutting diplomatic ties with Qatar on June 5, accusing Qatar of backing terrorism.

Qatar’s dispute with its Middle East allies could complicate politics among members of the Organization of Petroleum Exporting Countries, some analysts noted. Saudi Arabia accuses Qatar of supporting Iran although Qatar denied it, Dow Jones Newswires reported.

On both New York and London markets, oil prices fell overall last week. Analysts said investors were disappointed that OPEC members did not agree to increase production-cut targets at a meeting on May. 25.

OPEC and some non-OPEC countries extended existing targets through first-quarter 2018 in efforts to reduce ample world oil supplies and support oil prices.

Energy prices

The July light, sweet crude contract on the New York Mercantile Exchange fell 70¢ to $47.66/bbl on June 2. The August contract also fell 73¢ to close at $47.87/bbl.

The natural gas price for July dropped less than 1¢ to a rounded $2.99/MMbtu. The Henry Hub cash gas price was $2.84/MMbtu, down 9¢.

Heating oil for July dropped nearly 2¢ to a rounded $1.48/gal. Reformulated gasoline stock for oxygenate blending for July fell 2¢ to $1.58/gal.

The Brent crude contract for August on London’s ICE dropped 88¢ to $49.95/bbl on June 2. The September contract fell 73¢ to $50.24/bbl.

The June gas oil contract was $438.50/tonne on June 2, down $7.

The price of OPEC’s basket of crudes on June 2 was not immediately available.

Contact Paula Dittrick at paulad@ogjonline.com.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...