Oil Prices Tumble

Oil had rallied above $53 a barrel after some members of the Organization of Petroleum Exporting Countries voiced support for prolonging cuts past June, but rising U.S. output is undermining the effort to trim a global glut. Production from major shale plays in May is forecast to climb to the highest level since 2015, according to the EIA.

“The glaring rise in U.S. gasoline refined product inventories, in combination with persistent lower-48 production growth, keeps us cautious on oil prices,” said Chris Kettenmann, chief energy strategist at Macro Risk Advisors LLC in New York. “We would not buy the intraday dip.”

West Texas Intermediate for May delivery dropped $1.97, or 3.8 percent, to settle at $50.44 a barrel on the New York Mercantile Exchange. It was the biggest decline since March 8 and the lowest close since April 3. Total volume traded was about 30 percent above the 100-day average. WTI settled below the 50-day and 100-day moving averages for the first time in two weeks.

Brent for June settlement fell $1.96, or 3.6 percent, to $52.93 a barrel on the London-based ICE Futures Europe exchange. It was the lowest close since March 31. The global benchmark crude ended the session at a $2.08 premium to June WTI.

via Pence Visits Carrier as Questions Emerge Over Trump’s ‘Armada’ – Bloomberg

Advertisements

About marypmadigan

Writer/photographer (profession), foreign policy wonk (hobby).
This entry was posted in Politics/Foreign correspondents. Bookmark the permalink.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s