Crude and Product Prices Flounder Amid Quiet Trading

Strategic Insights -

Despite a five-day rally, crude and product prices experienced a corrective dip on Monday, settling down due to a lack of news and quiet trading. The June crude futures contract on the New York Mercantile Exchange (Nymex) fell by 29 cents to $20.12/bbl, while the May gasoline contract dropped 0.99 cents to settle at 62.21 cents/gallon. Traders were unfazed by the falls, attributing them to a necessary correction after a prolonged bullish trend.

Key Takeaways:

  • The June crude futures contract on Nymex fell by 29 cents to $20.12/bbl, a decline of 0.14% from the previous day.
  • The May gasoline contract on Nymex dropped 0.99 cents to settle at 62.21 cents/gallon, a decline of 1.59% from the previous day.
  • Traders expected a correction after a five-day rally, citing the need for prices to pull back and gather momentum for the next push.
  • The North Sea Cormorant Alpha platform returned to service after unplanned maintenance, easing supply concerns.
  • The Iraqi Parliament's discussion of the U.N. resolution for a one-time Iraqi oil sale had no impact on prices, as traders believe it will not result in an official announcement.
  • West Texas Intermediate (WTI) crude at Cushing, Okla., fell 25 cents-30 cents to $20/bbl, mirroring the Nymex drop.
  • Gasoline prices on the cash market dropped harder in the New York Harbor region than on the Gulf Coast, due to refiners continuing some buying.
  • A weekly volume record was set on Nymex's Access after-hours electronic trading system, led by crude contracts, with 34,508 contracts traded.

Statistics:

  • 34,508 contracts traded on Nymex's Access after-hours electronic trading system last week, a new weekly volume record.
  • 22,934 crude contracts traded, accounting for 66.3% of the total traded volume.
  • 6,160 natural gas contracts traded.
  • 2,024 gasoline contracts traded.
  • 1,855 heating oil contracts traded.
  • 62.21 cents/gallon is the May gasoline contract settlement price.
  • 61.95 cents is the lowest price reached by gasoline on Nymex.
  • $20/bbl is the WTI crude price at Cushing, Okla.
  • $20.12/bbl is the June crude futures contract settlement price on Nymex.

Sources:

  • "Nymex sets weekly trading volume record"
  • Washington Post