Light Crude Trades Above $60
West Texas Intermediate (WTI) for August delivery crossed the $60-mark Monday, but the light crude benchmark failed to stay above that psychologically important threshold.
The August WTI contract settled at $59.09 per barrel, reflecting a 62-cent gain for the first trading day of the week. It bottomed out at $58.34 during the session.
September Brent crude futures also edged upward Monday, adding 32 cents to settle at $65.06 per barrel.
As Bloomberg reported earlier Monday, oil traders were buoyed by signs that Saudi Arabia and Russia backed extending production curbs by the OPEC+ alliance and that U.S.-China trade talks were poised to resume. Despite recent bullish indicators, however, a Houston-based oil market-watcher told Rigzone that he is seeing longer-term bearish sentiment in the Texas oil patch.
“I talk to clients every day here, in South Texas, and out in Midland, and they all say the same thing,” said Tom McNulty, managing director with Great American Group. “OPEC and its friends can go and try to catch a falling knife. But oil prices, and natural gas prices, will ultimately decline during the next 12 months.”
From his vantage point, McNulty said that his clients are taking a precautionary stance anticipating downward price movements.
“The focus here is on preparing for that time, by extracting greater and greater efficiencies from the services and the midstream sides of the business,” he commented.
Reformulated gasoline (RBOB) finished higher as well Monday. The August RBOB contract gained three cents to end the day at $1.93 per gallon.
Henry Hub natural gas, which posted a 5.5-percent gain during the previous trading week, faltered for the second consecutive session Monday. August gas futures lost four cents to settle at $2.27
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