Oil futures plunged on Monday after a three-day weekend. There are weaknesses due to concerns about OPEC and its allies’ decision to ease production restraints, and signs that more supply from Iran is on the market.
West Texas Intermediate Crude Oil Delivered in May
On the New York Mercantile Exchange, it fell $ 2.15 (3.5%) to $ 59.30 a barrel. Based on last month’s data, prices are on track to suffer the lowest finish since March 23, according to FactSet data.
June Brent Crude
The global benchmark fell $ 2.06 (3.2%) at ICE Futures Europe to $ 62.80 a barrel, ready for the lowest settlement since March 25th.
Crude oil recovered 3% on Thursday and Saudi Arabia 100 a day after OPEC + announced that it had agreed to increase oil production by 350,000 barrels in May, 350,000 barrels in June and 441,000 barrels in July. The voluntary reduction of 10,000 barrels was gradually set back. It has been in place since January.
Brent rose 0.7%, while Larry rose WTI 0.8% that week. Oil futures have been closed due to the Good Friday holiday.
Robbie Fraser, Global Research and Analytics Manager at Schneider Electric, said: “Members are confident in the continued recovery in demand, suggesting that they are potentially cautious as US shale is recovering from the loss in 2020.”
Reported on thursday Increased number of active US oil drilling rigs From 13 to 337 of the week, pointing production will increase first.
Meanwhile, analysts said rising OPEC + production and concerns over China’s import demand could be a factor in Monday’s weakness.
The· The Financial Times reported on Sunday The People’s Bank of China has instructed domestic and foreign lenders to keep lending growth in the first quarter at about the same level as last year, if not lower.
Stephen Innes, Axi’s Chief Global Market Strategist, said:
Meanwhile, analysts have pointed out signs of an increase in Iran’s crude oil shipments despite U.S. sanctions, and Iran’s supply increased by 210,000 barrels a day in March, according to a Reuters survey. Averaged 2.3 million barrels a day.
Moreover, it happens when the United States and Iran are preparing to engage in indirect negotiations aimed at the potential recovery of the nuclear deal.
“If this happens, US sanctions on Iran will be lifted and Iran’s oil exports are likely to grow further,” said Warren Patterson, head of product strategy at ING.
“But our balance sheet has already allowed further increases in Iran’s supply, assuming a daily supply of 3 million barrels by the fourth quarter of 2009,” he said. Said. “Despite this increase, our balance sheet continues to suggest inventory drawdowns.”
Nymex Monday Action Closing, May Gasoline Contract Prices
While heating kerosene in May, it fell 2.2% to $ 1.98 a gallon.
It was down 2.9% to $ 1.78 a gallon.
May natural gas
It traded at $ 2.49 per million British thermal units, down 5.5%.
In a press release on Monday, AccuWeather forecasters predicted “another busy year for the card” for the Atlantic hurricane season, which will officially begin in June. Still, the season is expected to be “a little less busy than the 2020 non-stop season.” Hurricane activity in the Atlantic Ocean can disrupt energy production and refinery activity in the region.
AccuWeather sees “the extraordinary season of tropical activity in the Atlantic Ocean”, which is believed to have 14 storms, 7 hurricanes, and 3 major hurricanes.
Oil will decrease by more than 3% and Iran’s output will increase as OPEC + eases curbs
http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D35E2183F8E4%7D&siteid=rss&rss=1 Oil will decrease by more than 3% and Iran’s output will increase as OPEC + eases curbs