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Petroleum

Oil Prices Plummet Amid Excessive Supplies and Weak Demand

Strategic Insights

— 1 min read

Crude oil and gasoline prices tumbled on Thursday, continuing a decline that began earlier in the week, amidst growing concerns over excessive crude supplies and weak gasoline demand. The West Texas Intermediate (WTI) crude oil futures for June delivery fell 34 cents to $16.57 per barrel, with WTI prices plummeting 67 cents this week after reaching $17.24 per barrel on Monday. The unexpected decline raises questions about the three-week April rally that added approximately $3.50 per barrel to crude oil prices.

Key Takeaways:

  • WTI crude oil futures for June delivery fell 34 cents to $16.57 per barrel on Thursday.
  • WTI prices have declined 67 cents so far this week after hitting $17.24 per barrel on Monday.
  • The price slide jeopardizes the three-week April rally that added approximately $3.50 per barrel to crude oil prices.
  • North Sea Brent futures for June on London's International Petroleum Exchange fell 11 cents to $15.23 per barrel.
  • Gasoline prices were hurt by new data from the American Petroleum Institute (API) and the Department of Energy showing an unexpected rise in both crude and gasoline stocks.
  • Unleaded regular gasoline futures for May delivery to New York Harbor fell sharply by 2.12 cents per gallon to close at 48.59 cents per gallon.
  • No. 2 heating oil futures for May dropped 0.85 cents to 46.52 cents per gallon.

Statistics:

  • WTI crude oil futures for June delivery declined by 34 cents to $16.57 per barrel.
  • The WTI price drop represents a 67-cent decline this week after reaching $17.24 per barrel on Monday.
  • The North Sea Brent futures for June fell 11 cents to $15.23 per barrel on Thursday.
  • The Apple rally added approximately $3.50 per barrel to crude oil prices, now at risk due to the price slide.
  • Gasoline demand is running behind last year's level, according to the American Petroleum Institute (API) data.
  • Unleaded regular gasoline futures for May delivery to New York Harbor fell by 2.12 cents per gallon to 48.59 cents per gallon.
  • No. 2 heating oil futures for May dropped 0.85 cents to 46.52 cents per gallon.

Sources:

  • The Wall Street Journal, "Oil Prices Fall Sharply"
  • American Petroleum Institute (API) data
  • Department of Energy data
  • International Petroleum Exchange (IPE) data
  • Crude Oil Futures Market Data (no specific date)

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