MARKET WATCH: Oil price benchmarks remain steady

March 16, 2018
Oil price benchmarks remained relatively steady on New York and London markets as healthy demand reports helped balance the rise in US production.

Oil price benchmarks remained relatively steady on New York and London markets as healthy demand reports helped balance the rise in US production.

The Organization of Petroleum Exporting Countries reported on Mar. 14 that oil consumption is expected to rise by 1.62 million b/d in 2018. The International Energy Agency, in its monthly Oil Market Report released Mar. 15, forecast world oil demand will rise 1.5 million b/d to average 99.3 million b/d in 2018.

And, while it appears US production will continue its rise, the report said tariffs on steel and aluminum imports imposed by US President Donald Trump could have consequences if a global trade war results.

“A slowdown (in global trade) would have strong consequences, particularly for fuel used in the maritime sector and in the trucking industry,” the report said.

Crisis-hit Venezuela also remains a concern. “Without any compensatory change from other producers it is possible that the Latin American country could be the final element that tips the market decisively into deficit,” the report said.

Energy prices

The April light, sweet crude contract on the NYMEX gained 23¢ on Mar. 15 to settle at $61.19/bbl. The May contract rose 23¢ to $61.25/bbl.

The NYMEX natural gas price for April dropped 5¢ to $2.68/MMbtu. The Henry Hub cash gas price gained 1¢ to $2.67/MMbtu on Mar. 15.

Ultralow-sulfur diesel for April dropped 4¢ to a rounded $1.85/gal. The NYMEX reformulated gasoline blendstock for April remained unchanged at $1.92/gal.

Brent crude oil for May increased 23¢ to $65.12/bbl on London’s International Commodity Exchange. The June contract was up 19¢ to $64.95/bbl. The gas oil contract for April was $574.75/tonne, up $2.50.

OPEC’s basket of crudes was $62.24/bbl on Mar. 15, up 27¢.