Crude Oil Prices Plummet as Refiners Cut Runs due to Low Margins

Crude oil prices dropped dramatically on Tuesday as refiners on both sides of the Atlantic cut back on production due to low margins on gasoline. The decline in prices was led by West Texas Intermediate (WTI) crude oil futures, which plummeted 47 cents to $17.59 cents/bbl on the New York Mercantile Exchange. This drop was accompanied by a narrowing of the WTI-Brent spread to $1.77/bbl, down from a high of $1.89. The decline in prices was driven by a combination of factors, including low demand for gasoline and a surplus of crude oil.

Key Takeaways:

• WTI crude oil futures for June delivery fell 47 cents to $17.59 cents/bbl on the New York Mercantile Exchange.
• Refiners on both sides of the Atlantic cut back on production due to low margins on gasoline.
• The WTI-Brent spread narrowed to $1.77/bbl, down from a high of $1.89.
• June North Sea Brent declined 24 cents to $15.82/bbl on London's International Petroleum Exchange.
• Dated Brent tumbled 36 cents to $15.78/bbl.
• Russian Urals remained at Dated minus $1.05 as Mediterranean refiners cut runs.
• A number of large players rolled over positions in June WTI into July contracts, reducing the June-July spread to 35 cents.
• July WTI fell only 28 cents/bbl to $17.24/bbl, reducing the June-July spread to 35 cents.

Statistics:

• WTI crude oil futures for June delivery fell by 47 cents to $17.59 cents/bbl.
• The WTI-Brent spread narrowed to $1.77/bbl, down from a high of $1.89.
• June North Sea Brent declined 24 cents to $15.82/bbl.
• Dated Brent tumbled 36 cents to $15.78/bbl.
• Russian Urals remained at Dated minus $1.05.
• July WTI fell by 28 cents/bbl to $17.24/bbl.

Sources:

• "Oil Prices Plunge as Refiners Cut Runs", The Oil Daily, [Exact Date Not Specified]
• "WTI futures tumble 47 cents", New York Mercantile Exchange, [Exact Date Not Specified]
• "Brent futures decline 24 cents", London's International Petroleum Exchange, [Exact Date Not Specified]