Light, sweet crude oil prices fluctuated between gains and losses on the New York market July 23. The September contract closed lower but the October contract closed higher following an exchange of threats between US President Donald Trump and Iranian President Hassan Rouhani.
Trump has vowed to impose strict sanctions on Iran. In May, he announced a US exit from an international agreement to lift economic sanctions in exchange for Iran’s cooperation on its nuclear program.
Analysts have estimated up to 1 million b/d in Iranian crude exports could be disrupted when the new unilateral oil sanctions are imposed in early November.
Ole Hansen, Saxo Bank head of commodity strategy, said market participants remain uncertain about how much actual Iranian production will be slowed following restricted oil exports.
“The market is playing it a little on the cool side,” he said. During May, Brent crude oil prices briefly reached above $80/bbl after Trump’s Iranian announcement.
Commerzbank analysts issued a research note saying, “Apparently the market believes there is only a small likelihood of the Iran crisis escalating.”
Energy prices
The light, sweet crude contract for September delivery on the New York Mercantile Exchange fell 37¢ to close at $67.89/bbl on July 23. The October contract gained 11¢ to settle at $68.75/bbl.
The NYMEX natural gas price for August fell nearly 4¢ to a rounded $2.72/MMbtu. The Henry Hub cash gas price dropped 6¢ to $2.70/MMbtu.
Ultralow-sulfur diesel for August rose 1¢ to $2.11/gal. The NYMEX reformulated gasoline blendstock for August gained 2¢ to settle at a rounded $2.09/gal.
Brent crude oil for September edged down 1¢ to $73.06/bbl on London’s International Commodity Exchange. The October contract went the opposite direction, gaining 24¢ to settle at $73.38/bbl. The gas oil contract for August was $650.75/tonne, up $6.
The Organization of Petroleum Exporting Countries’ basket of crudes average price for July 23 was $71.85/bbl, up 28¢.
Contact Paula Dittrick at [email protected].
