NY Crude Up 3.4% at US$104.60 and Brent Crude Up 2.75% at Near US$108.60

U.S. Natural Gas Prices Rise in Week Ended May 13 Amid Near-Normal Temperatures, EIA Reports

The U.S. benchmark Henry Hub natural gas spot price rose US$0.13 per million British thermal units to $2.88/MMBtu in the week ended May 13, the U.S. Energy Information Administration said in its Weekly Natural Gas Storage Report Supplement released Thursday.Temperatures across the country remained near normal overall, limiting heating and cooling needs, the EIA noted.U.S. natural gas demand edged lower by 0.5 billion cubic feet per day week over week, led by a decline in residential and commercial consumption and slightly offset by a rise in electric power sector demand, the EIA said.U.S. natural gas supply increased 1.0 Bcf/d, led by higher dry natural gas production, the EIA reported, citing LSEG Data.Net injections into storage amounted to 85 Bcf for the week ended May 8, resulting in total working gas stocks of 2,290 Bcf. This was 140 Bcf more than the five-year average and 51 Bcf more than the year-ago period.The LNG-carrying capacity of vessels departing U.S. ports was 141 Bcf, up 26 Bcf from the previous week. Thirty-seven LNG vessels left the country, an increase of seven vessels week over week, the EIA reported.

Brent Crude Up 3.25% at Near US$109.20

Crude Oil Prices Surge as U.S. Statements on China Meeting Renew Focus on Supply Issues

Crude oil prices surged on Friday after U.S. President Donald Trump said he and Chinese President Xi Jinping agreed that Iran cannot have nuclear weapons, returning market focus to the ongoing closure of the Strait of Hormuz.Brent crude at last look jumped 3.1% to US$109.02/barrel and West Texas Intermediate crude gained 3.5% to $104.72/barrel. Besides the U.S.-Iran deadlock and the blocked strait, the market is also concerned about renewed military escalation, Reuters said in a Friday report, citing analysts.Though the strait is still effectively closed, Iran's Revolutionary Guard said 30 vessels had crossed it since Wednesday evening, down from the typical number of 140 vessels before the war but a substantial increase if confirmed, the report said."Oil prices swung several times yesterday but still closed near the day's high," Reuters quoted Yang An, analyst at Haitong Futures, as saying. "Ships passing through the strait eased some market concerns, but not enough to change the strong trend driven by tight supply."