Energy
Wednesday, May 22nd, 2024 4:23 pm EDT
Key Points
- Crude oil futures fell for a third consecutive session, signaling a continuing losing streak as prices soften ahead of a crucial OPEC meeting in June.
- U.S. crude oil and the global benchmark Brent have both decreased by more than 2% for the week, reflecting the ongoing downward trend in oil prices.
- Despite unexpected builds in U.S. commercial crude oil stockpiles, with a rise of 1.8 million barrels last week contrary to analysts’ expectations, and gasoline stockpiles falling slightly more than projected, oil prices are drifting lower due to the absence of major market-driving developments. OPEC and its allies, led by Russia, are expected to convene to review production policy, with analysts predicting an extension of production cuts as oil prices continue to soften.
Crude oil futures continued their decline for a third consecutive session, marking a week of losses leading up to a significant OPEC meeting scheduled for June. Both U.S. crude oil and the global benchmark Brent have dipped over 2% for the week, reflecting softening prices in anticipation of the upcoming meeting. Today’s energy prices show West Texas Intermediate’s July contract at $78.01 a barrel, down 62 cents, while Brent’s July contract sits at $81.12 a barrel, down 76 cents. RBOB Gasoline futures for June are at $2.49 a gallon, down 0.77%, and Natural Gas for June is at $2.74 per thousand cubic feet, up 2.62%. The unexpected build of 1.8 million barrels in U.S. commercial crude oil stockpiles last week contrasts with analysts’ expectations of a 2.5 million-barrel decrease, while gasoline stockpiles fell slightly more than projected. Despite a slight increase in the rate of refinery processing, oil prices have been gradually declining due to a lack of significant market-driving developments and traders’ focus shifting away from geopolitical tensions. The imminent OPEC meeting, where discussions on production policy are anticipated, is expected to result in an extension of production cuts as oil prices continue to soften, according to analysts.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/22/crude-oil-prices-today-wti-brent-fall-for-third-day.html
