Sign in Subscribe
Petroleum

Crude Oil Prices Flirt with $20/Bbl in New York, Settle Slightly Higher

Strategic Insights

— 1 min read

Crude oil prices in New York took an early dip on Tuesday after the holiday weekend, with August light, sweet crude futures on the New York Mercantile Exchange (Nymex) falling to $19.78/bbl before recovering and rising to $19.99/bbl. The contract ultimately settled at $19.78/bbl, up 9 cents. Mild support from traders continued throughout the day, driven by early reports pegging OPEC output cut compliance at around 94% in June.

Key Takeaways:

  • Crude oil prices in New York flirted with $20/bbl but failed to hit the mark, settling at $19.78/bbl, up 9 cents.
  • Traders reported OPEC output cut compliance at around 94% in June, providing mild support to the market.
  • Concerns over potential disruptions in oil from Nigeria and Iraq due to political issues are giving the market additional support.
  • The market is unclear what OPEC hopes to accomplish at its upcoming meeting, potentially casting doubt on the effectiveness of output cuts.
  • Victor Yu, vice president at Refco Inc., noted that while the market is bullish, fundamentals may not be strong enough to push it much higher.
  • Crude oil prices may reach $21/bbl in the next couple of months, according to Yu.
  • August North Sea Brent crude futures fell 8 cents to close at $18.10/bbl in London.
  • Nymex gasoline stayed in positive territory but was hurt by refinery restarts, settling only 0.02 cents higher at 58.48 cents/gallon.
  • August heating oil made up for slow movement but was cut into gains by late profit-taking, settling 0.24 cents higher at 49.38 cents/gallon.

Statistics:

  • March 20: Crude oil prices in New York reached $19.99/bbl before settling at $19.78/bbl.
  • OPEC output cut compliance: 94% in June.
  • Gasoline prices: 58.48 cents/gallon.
  • Heating oil prices: 49.38 cents/gallon.
  • Natural gas spot prices in South Texas: advanced 4 cents.
  • August Nymex Henry Hub contract: fell 9.6 cents to $2.191/MMBtu.
  • Refinery restarts: 1. Mobil Corp. restarted a 105,000 b/d catalytic cracker at its Beaumont, Texas, refinery.
  • 2. Lyondell Citgo Refining Co. Ltd. restarted a 42,000 b/d coker at its Houston refinery.

Sources:

  • Alexander Brideau and Steve Parezo, [New York Oil Market]

Read more