Oil Prices Muted Despite Iran Nuclear Report
West Texas Intermediate (WTI) and Brent crude oil prices moved in less-than-bullish fashion Monday.
The WTI for August delivery added 15 cents to end the day at $57.66 per barrel. The light crude marker traded within a range from $57.30 to $58.46.
Meanwhile, the September Brent contract price fell 12 cents Monday to settle $64.11 per barrel.
In a report posted to Rigzone earlier in the day, Bloomberg observed that pessimism about oil prices is growing given diminishing global economic expectations. The news service reported that short-selling bets on Brent during the week ended July 2 were at their highest point in nearly six months.
Also having little impact on the oil market was Iran’s confirmation over the weekend that it would raise its level of nuclear enrichment beyond the level stipulated in a 2015 deal that ended sanctions on the Islamic Republic. The United States, one of seven signatories making the deal with Iran, withdrew from the agreement last year.
“Oil prices just do not seem to jump up that much when there is news of an issue with Iran,” Tom McNulty, Houston-based managing director with Great American Group, told Rigzone mid-afternoon Monday.
He noted that oil market’s muted response to an otherwise-alarming development stems from the widespread availability of crude.
“I just checked CO1 (Brent) and CL1 (WTI) on my Bloomberg terminal,” McNulty said. “Brent for June 2020 is at $62.28 and WTI for June 2020 is at $56.28. The forward curve is essentially flat, and that’s because there is plenty of supply.”
Reformulated gasoline (RBOB) also finished lower Monday. The August RBOB contract settled at $1.90 per gallon, reflecting a three-cent decline.
August Henry Hub natural gas futures lost 1.5 cents, settling at $2.40.
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