Oil Prices Partially Recover
West Texas Intermediate (WTI) and Brent crude oil prices recovered somewhat Monday after falling sharply late last week.
January WTI gained 79 cents Monday, settling at $55.96 per barrel. The contract traded within a range from $55.42 to $56.67.
Also moving upward was February Brent, which added 43 cents to end the day at $60.92 per barrel
Acknowledging that WTI added nearly 1.5 percent Monday, Tom McNulty – Houston-based managing director with Great American Group – reminded Rigzone that the light crude marker plunged during the second half of last week. Friday’s WTI settlement price was 5.1 percent lower than Wednesday’s close just before the Thanksgiving holiday. The February Brent price dipped four percent during the period.
“This is a false, or baby, rally,” commented McNulty. “What’s going on with demand forecasts? Slight increases at best for 2020. Will anyone in OPEC+ cheat and produce more oil than they are supposed to? Yes. Will producers in the U.S. who need cash produce more oil at lower price levels? Yes.”
Reformulated gasoline (RBOB) futures moved in the opposite direction of WTI and Brent Monday. January RBOB shed nearly two cents to settle at $1.57 per gallon.
Henry Hub natural gas for January delivery, however, finished higher. The gas benchmark gained five cents, settling at $2.34.
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