Crude Oil Starts Week Mixed
West Texas Intermediate (WTI) crude oil finished higher Monday while the Brent posted its first loss since June 19.
The WTI for August delivery gained 47 cents Monday to settle at $57.90 per barrel. It peaked at $58.22 and bottomed out at $56.75.
The August Brent contract price edged downward, losing 34 cents to end the day at $64.86 per barrel.
Earlier Monday, both the WTI and Brent were ascending amid concerns about escalating tensions in the oil-rich Persian Gulf region. Moreover, President Trump signed an executive order imposing sanctions on the Supreme Leader for Iran that the White House contends will deny Iran’s ruler and his associates “access to key financial resources and support.” Separately, in a series of tweets Monday morning Trump questioned why the United States protects the vital shipping lanes in the Strait of Hormuz “for zero compensation” when it produces so much energy.
Despite the recent overall upward fluctuations in oil prices, a Houston-based prognosticator predicted the WTI and Brent will likely moderate at some point in the near future.
“Traders need volatility to make money and will use the tensions with Iran to do just that,” said Tom McNulty, managing director with Great American Group. “However, it is not likely that we will jump into another war in the Middle East so I expect Brent and WTI to trade back down fairly soon. There will be plenty of supply to meet demand, and keep in mind the U.S. is on course to a 13-million-barrel-per-day production level.”
Reformulated gasoline (RBOB) also posted a slight loss Monday. The July RBOB contract fell by less than one penny to settle at $1.85 per gallon.
Henry Hub natural gas, which lost more than eight percent during the previous trading week, showed a gain during Monday’s session. July gas futures rose nearly 12 cents to close at $2.30.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension