Crude Oil Prices Remain Range-Bound Ahead of Weekend as Traders Focus on Pre-Weekend Short-Covering

Strategic Insights -

Crude oil prices in New York remained unchanged on Friday, drifting sideways as traders focused on short-covering ahead of the weekend. The absence of fresh fundamental market news led to a lack of direction, with the front-month crude futures contract on the New York Mercantile Exchange (Nymex) hovering around the $14/bbl mark. The market is expecting a decline in gasoline demand growth, with the Energy Information Administration (EIA) cutting its forecast to less than 2% over 1997's level.

Key Takeaways:

  • Crude oil prices in New York remained range-bound on Friday, drifting sideways ahead of the weekend.
  • The absence of fresh fundamental market news led to a lack of direction, with traders focusing on pre-weekend short-covering.
  • The front-month crude futures contract on the Nymex hovered around the $14/bbl mark.
  • The Energy Information Administration (EIA) cut its forecast for gasoline demand growth to less than 2% over 1997's level.
  • August Nymex light, sweet crude futures contract lost 63 cents/bbl on the week.
  • North Sea Brent futures on London's International Petroleum Exchange (IPE) dropped 71 cents/bbl on the week.
  • The trans-Atlantic arbitrage widened over the week by 8 cents to $1.01/bbl.
  • August Nymex gasoline futures settled at 46.81 cents/gallon, down 0.34 cents on the day.
  • Heating oil futures saw the largest loss of the complex, with the August contract dropping 40 cents to close at 37.52 cents/gallon.

Statistics:

  • Crude oil prices in New York remained at $13.87/bbl, down 1 cents on the day.
  • August Nymex light, sweet crude futures contract lost 63 cents/bbl on the week, settling at $13.87/bbl.
  • North Sea Brent futures on London's International Petroleum Exchange (IPE) dropped 71 cents/bbl on the week, settling at $12.86/bbl.
  • The trans-Atlantic arbitrage widened over the week by 8 cents to $1.01/bbl.
  • August Nymex gasoline futures lost 0.34 cents on the day, settling at 46.81 cents/gallon.
  • Heating oil futures saw a drop of 40 cents on the August contract, closing at 37.52 cents/gallon.

Sources:

  • New York Mercantile Exchange (Nymex)
  • International Petroleum Exchange (IPE)
  • Energy Information Administration (EIA)