Crude Oil Futures Remain Above $41 a Barrel Amid Rising Concerns

Purnomo Yusgiantoro, the Opec president and Indonesian oil minister, has addressed growing concerns about the impact of high crude oil prices on economic activity. The oil cartel is committed to supplying more crude, but the current spike in prices is attributed to a lack of refinery capacity in the US. Gasoline demand is projected to outpace supplies this summer, while inventories are at their lowest levels since 1997. The high prices have led to a record high in US gasoline futures, with the June Nymex gasoline futures contract gaining 1.8 cents to $1.4680 a gallon.

Key Takeaways:

• Crude oil futures remained above $41 a barrel, putting pressure on Opec oil ministers to calm growing concerns about the impact of high prices on economic activity.
• The Opec president, Purnomo Yusgiantoro, blamed the lack of refinery capacity in the US for the current spike in prices, which is the highest since crude oil futures started trading on the New York Mercantile Exchange in 1983.
• Gasoline demand is projected to outpace supplies this summer, with US gasoline imports sliding and refineries operating at capacity.
• Record gasoline prices are expected, with Ed Meir, energy analyst at Man Financial, predicting a further rise to $1.55-$1.60 by Memorial Day.
• US natural gas futures hit a five-month high after a slightly bullish storage report, with the June Nymex Henry Hub natural gas futures peaking at $6.57 per million British thermal units.
• Gold prices eased, while copper and aluminium prices retreated, with lead, zinc, nickel, and tin continuing their advance after China ruled out an immediate interest rate hike.

Statistics:

• Crude oil futures remained above $41 a barrel.
• Opec oil prices have been out of control since 1983, when crude oil futures started trading on the New York Mercantile Exchange.
• Gasoline demand is projected to outpace supplies this summer.
• US gasoline imports have been sliding, with refineries operating at capacity.
• Record gasoline prices are expected, with the June Nymex gasoline futures contract gaining 1.8 cents to $1.4680 a gallon.
• US natural gas futures hit a five-month high, peaking at $6.57 per million British thermal units.
• Gold prices eased to $380.00-$380.75 a troy ounce.
• Copper and aluminium prices retreated, while lead, zinc, nickel, and tin continued their advance.

Sources:

• Man Financial
• Purnomo Yusgiantoro, Opec president and Indonesian oil minister
• Nymex
• IPE
• Ed Meir, energy analyst at Man Financial
• June Nymex Henry Hub natural gas futures report
• US natural gas futures report
• China's interest rate hike announcement
• Gold price report
• Copper, aluminium, lead, zinc, nickel, and tin price reports