Oil Prices Edge Upward
West Texas Intermediate (WTI) and Brent crude oil posted gains – albeit modest ones – during the first trading day of the week.
January WTI added 24 cents Monday, settling at $58.01 per barrel. The light crude marker traded within a range from $57.21 to $58.15.
The January Brent contract ended the day at $63.65 per barrel, reflecting a 26-cent gain.
“Not much net movement today,” said Tom McNulty, Houston-based managing director with Great American Group. “WTI was up about one percent, then down about 0.5 percent, then back up about 0.5 percent.”
McNulty also opined that Monday’s oil price movements likely do not reflect a balancing-out during the final weeks of 2019.
“Could this be some kind of year-end supply-demand equilibrium?” he said. “I doubt it. The U.S. rig count continues to decline, but production continues to go up. Production is cash flow, and that’s what most oil companies here want more than anything.”
Minor gains were not limited to crude oil futures Monday. Reformulated gasoline (RBOB) also showed a slight increase, with December RBOB adding well under one cent to settle at $1.67 per gallon.
Henry Hub natural gas, however, posted no increase at all. On Monday the December gas benchmark lost 13 cents to close at $2.53.
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