Oil Prices Start Week Mixed
The West Texas Intermediate (WTI) and Brent crude oil benchmarks moved in opposite directions Monday.
The June WTI contract added 34 cents during the first trading day of the week, settling at $63.10 per barrel. It peaked at $63.81 and bottomed out at $62.45.
Meanwhile, Brent crude oil for July delivery ended the day at $71.97. That translates into a 24-cent loss.
“Oil seems to be drifting a bit,” Tom McNulty, Houston-based managing director with Great American Group, told Rigzone.
McNulty remarked that the weekend meeting by “OPEC+” partners – particularly Saudi Arabia and Russia – has left oil market players guessing what the major producers’ next move will be.
“The market is trying to decipher what the Saudis and Russians have been saying recently,” noted McNulty. “Will they maintain production cuts or add barrels to the market between now and the end of the year? It’s hard to say.”
Reformulated gasoline (RBOB) edged downward Monday. The June contract ended the day at $2.01 per gallon, reflecting a nearly four-cent loss.
Henry Hub natural gas posted a gain Monday, with June gas futures adding four cents to settle at $2.67. Compared to the oil market, the gas market exhibits more clarity nowadays, McNulty pointed out.
“Henry Hub natural gas is a bit easier to understand right now,” said McNulty. “It traded up today, nearly more than one percent, given multiple forecasts for hot weather across the U.S.”
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Senior Editor | Rigzone