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Petroleum industry

Crude Oil Prices Rebound on Short-Covering After Early Morning Profit-Taking

Strategic Insights

— 2 min read

Washington D.C. briefly witnessed a reversal of early morning profit-taking on crude prices as the New York Mercantile Exchange (NYMEX) rebounded on afternoon short-covering. The June crude contract on NYMEX rose by 22 cents to settle at $20.41/bbl on its first day as the near-month contract, while the May contract closed at $20.52. West Texas Intermediate (WTI) crude prices at Cushing, OK, fell by 13 cents to $20.37/bbl, but the cash/NYMEX price spread remained fairly stable at 4 cents.

Key Takeaways:

  • The June crude contract on NYMEX rose by 22 cents to settle at $20.41/bbl, marking its first day as the near-month contract.
  • The May contract closed at $20.52, with no significant changes in the WTI crude prices.
  • Unplanned maintenance on the Cormorant Alpha platform in the North Sea, along with declining crude imports and upcoming gasoline demand, supported cash WTI crude prices.
  • Production at the Elf Enterprise Caledonia Ltd.'s 50,000 b/d Claymore oil field was reduced due to a compressor problem, further affecting supply.
  • High storage levels of Alaska North Slope (ANS) crude curtailed ANS weekend production by 200,000 b/d.
  • The Iraqi Parliament's rejection of the U.N. oil sale proposal had no significant impact on the market.
  • Gasoline prices stumbled in the May Nymex contract, but June and July gasoline contracts maintained recent gains, rising 0.25 cents and 31 cents, respectively.
  • Shell Oil Co. began planned maintenance on its 215,000 b/d Deer Park, Texas, refinery, potentially affecting future supply.

Statistics:

  • $20.41/bbl: The closing price of the June crude contract on NYMEX.
  • $20.52: The closing price of the May crude contract on NYMEX.
  • $20.37/bbl: The WTI crude prices at Cushing, OK.
  • 4 cents: The cash/NYMEX price spread.
  • 22 cents: The increase in the June crude contract on NYMEX.
  • 13 cents: The decrease in WTI crude prices at Cushing, OK.
  • 200,000 b/d: The reduction in ANS weekend production.
  • 30-40 cents/gallon: The decrease in ANS cash prices on the West Coast.
  • 60-70 cents: The increase in cash gasoline prices at the New York Harbor.
  • 0.65-0.70 cents: The decrease in cash gasoline prices on the Gulf Coast.

Sources:

  • Washington -- Crude prices on the New York Mercantile Exchange (Nymex) rebounded on afternoon short-covering, reversing early-morning profit-taking on crude's recent highs. (Original source not explicitly mentioned)
  • Washington Post (Publication date not explicitly mentioned)

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