Oil prices rose Aug. 27 as stock markets hit record highs and continued the price momentum Aug. 28. US President Donald Trump said a US-Mexico trade deal would revise the North American Free Trade Agreement, but the revisions potentially could exclude Canada.
Light, sweet crude oil prices gained 15¢ on the New York market Aug. 27 while Brent gained 39¢ on London’s Intercontinental Commodity Exchange.
Oil prices “listened to what the stock markets had to say—both the S&P 500 index and the Nasdaq index hit all-time highs,” Tamas Varga, an analyst with PVM Oil Associates Ltd. told the Wall Street Journal, attributing the stock market rally to the trade agreement.
Separately, Commerzbank analysts said oil prices were supported by a weaker US dollar and hopes for a resolution in a US-China trade conflict. Oil trades in dollars so a weaker dollar makes crude cheaper for buyers starting with other currencies.
Energy prices
The light, sweet crude contract for October delivery on the New York Mercantile Exchange gained 15¢ to $68.87/bbl on Aug. 27. The November contract increased 18¢ to settle at $68.54/bbl.
The NYMEX natural gas price for September decreased 4¢ to $2.87/MMbtu. The Henry Hub cash gas price fell 1¢ to $2.95/MMbtu.
Ultralow-sulfur diesel for September gained 1¢ to remain at a rounded $2.21/gal. The NYMEX reformulated gasoline blendstock for September rose about 1¢ to a rounded $2.09/gal.
Brent crude oil for October increased 39¢ to $76.21/bbl on London’s ICE. The November contract increased 37¢ to $76.50/bbl. The gas oil contract for September was $678.75/tonne on Aug. 27, down $2.25.
The Organization of Petroleum Exporting Countries’ basket of crudes for Aug. 27 was $74.09/bbl, up 7¢.
Contact Paula Dittrick at [email protected].
