Oil Prices Fall Amid Anticipation of Opec Production Increase

Oil futures declined for the second straight day, with traders waiting for details on a reported agreement by Opec to raise oil production. May light, sweet crude prices on the New York Mercantile Exchange (Nymex) briefly dropped to $27.01 per barrel before recovering to $27.09 per barrel, down 70 cents from the previous day. This decline follows a 93-cent drop in prices over the past two sessions, driven by traders selling off in anticipation of a rise in production.

Key Takeaways:

• Oil prices have fallen 93 cents over the past two sessions, with traders anticipating a rise in Opec production.
• Opec's formal agreement on production levels was not announced by the time markets closed.
• The American Petroleum Institute (API) reported a 1.236 million barrel decrease in crude stocks for the week ended March 24.
• Gasoline stocks increased by 299,000 barrels, while distillate stocks fell by 1.619 million barrels.
• The refinery utilization rate rose 0.3 percentage points to 90.4% of capacity.
• May Brent crude was down 17 cents to $25.51 per barrel in London.
• Natural gas spot prices spiked due to more seasonal weather and an uptick in futures market.
• The technicals are driving the oil market, according to a Houston-based trader.

Statistics:

• Crude stock decrease: 1.236 million barrels (API)
• Gasoline stock increase: 299,000 barrels (API)
• Distillate stock decrease: 1.619 million barrels (API)
• Refinery utilization rate: 90.4% of capacity (API)
• May Brent crude price: $25.51 per barrel (London)
• Natural gas spot price: $2.963 per million Btu (Nymex Henry Hub)
• Natural gas spot price increase: 4.9 cents (Nymex Henry Hub)

Sources:

• Oil prices on the New York Mercantile Exchange (Nymex)
• American Petroleum Institute (API)
• Oil futures trading
• Nymex Henry Hub natural gas spot price