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Petroleum

Crude Futures Soften on Nymex as Traders Anticipate Neutral to Bearish Inventory Statistics

Strategic Insights

— 1 min read

Oil prices softened on the New York Mercantile Exchange (Nymex) on Tuesday, with the May crude contract settling down 2 cents at $19.05 per barrel. The recent rally on Nymex prompted profit-taking in morning trading, but some traders remained optimistic about a recovery from the day's losses. Analysts, including Victor Yu of Refco Inc., expressed neutral to bullish projections for the inventory data.

Key Takeaways:

  • The May crude contract on Nymex settled down 2 cents at $19.05 per barrel.
  • Crude's recent rally on Nymex prompted profit-taking in morning trading, but some traders were optimistic about a recovery from the day's losses.
  • Victor Yu, an analyst with Refco Inc., predicted that crude could move up to $19.25 in the short term and potentially reach $20 in the June or July contract.
  • West Texas Intermediate crude delivered to Cushing, Okla., dropped about 2 cents to $19.06 per barrel.
  • The April heating oil contract on Nymex remained unchanged at 47.46 cents per gallon ahead of its expiration on Friday, but traded between 47.9 cents and 47.05 cents throughout the day.
  • According to a New York-based trader, heating oil is not expected to soften much due to the strength of European gasoline.
  • The April gasoline contract continued its recent rally, settling up 0.13 cents at 58.73 cents per gallon ahead of an expected draw on product stocks and tight European gasoline supplies.
  • Pegasus Econometric Group predicted that gasoline prices would strengthen further before liquidation prompts a price correction, although the market will remain bullish.

Statistics:

  • May crude contract settlement: $19.05 per barrel
  • Crude price to $19.25 per barrel in the short term: Predicted by Victor Yu
  • June or July contract potential: Up to $20 per barrel, predicted by Victor Yu
  • West Texas Intermediate crude: Dropped about 2 cents to $19.06 per barrel
  • April heating oil contract: Remained unchanged at 47.46 cents per gallon
  • April gasoline contract: Settled up 0.13 cents at 58.73 cents per gallon

Sources:

  • The Financial Times
  • Bloomberg News
  • Petroleum Intelligence Weekly
  • Refco Inc.
  • Pegasus Econometric Group
  • New York Mercantile Exchange (Nymex)

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