Energy
Thursday, May 30th, 2024 4:48 pm EDT
Key Points
- U.S. crude oil is experiencing minimal change but is facing its worst month of the year and a second consecutive monthly loss.
- In May, U.S. crude oil has decreased by 3.2%, marking its poorest performance since December, while Brent crude has seen nearly a 5% decline, potentially leading to its first negative month in five.
- Oil prices have remained within a narrow range due to stabilized inventories, but concerns arise from soft economic data indicating further downside risks, particularly in Chinese demand. Today’s energy prices include slight fluctuations in West Texas Intermediate and Brent crude, alongside decreases in RBOB Gasoline futures, with investors anticipating upcoming U.S. inventory and inflation data, as well as a critical OPEC+ meeting that will review production levels.
U.S. crude oil experienced minimal change on Thursday but is poised for its most significant monthly decline of the year and a second consecutive monthly loss. With a 3.2% drop in May, marking its worst performance since December, U.S. crude oil prices reflect a struggling market. Similarly, Brent crude has seen a nearly 5% decline this month, potentially marking its first negative month in five. This stagnation in oil prices comes amid stabilized inventories over the past month. However, concerns linger regarding soft economic indicators, suggesting further downside risks. According to Barclays energy analyst Amarpreet Singh, Chinese demand appears to have weakened in the first quarter, contributing to the cautious market sentiment. Presently, West Texas Intermediate crude for July contracts stands at $79.30 a barrel, while Brent crude for July contracts is at $83.49 a barrel. Despite minor fluctuations, both benchmarks reflect a generally bearish trend. Additionally, RBOB Gasoline futures for June contracts are down at $2.44 per gallon, whereas natural gas for July contracts is up at $2.68 per thousand cubic feet. Tamas Varga, an analyst at oil broker PVM, notes that while the pullback in prices isn’t catastrophic, it serves as a reminder of the uncertain economic and fundamental conditions not conducive to sustained price hikes. Investors are anxiously awaiting the latest U.S. inventory data, inflation figures, and a critical OPEC+ meeting scheduled for Sunday to review production levels, all of which could further influence market dynamics.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/30/us-crude-oil-falls-3point2percent-in-may-on-pace-for-worst-month-of-the-year.html
