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Petroleum

Oil Prices Show Little Net Movement Amid Hedge Fund Activity

Strategic Insights

— 1 min read

Futures markets for oil prices continued their volatile ride on Monday, with West Texas Intermediate crude oil futures for May delivery closing at $16.64/bbl, a gain of 6% from Friday. The recent rally has seen oil prices reach their highest levels since last November's meeting of the Organization of Petroleum Exporting Countries. Despite the gains, some traders are questioning whether the market is running out of steam, while others anticipate prices to continue rising.

Key Takeaways:

  • Hedge funds bought more oil futures contracts on Monday, contributing to the price increases.
  • West Texas Intermediate crude oil futures for May delivery traded in a range of $15.55 to $16.64/bbl before closing at $16.64/bbl, a gain of 6% from Friday.
  • May North Sea Brent futures touched a new 1994 high of $15.26/bbl before sliding back to $15.09, down 3% from Friday.
  • Physical Dated Brent rose 27% to $15.40, but weakened to a premium of 5% over May 15-day forward Brent.
  • Russian Urals slipped to Dated Brent minus 55% on the expectation of increased Russian exports.
  • Unleaded regular gasoline futures for May delivery to New York Harbor slipped 0.28% to 50.07% per gallon, while wholesale unleaded prices rose 0.26% to 54.46% per gallon.
  • May No. 2 heating oil futures declined 0.37% to 47.03% per gallon, but wholesale No. 2 increased 0.42% to 51.42% per gallon.
  • May natural gas futures showed the most strength, gaining 3.1% to $2.156/MMBtu, as spot prices firmed to a range of $2.09 to $2.14 at the Louisiana Gulf Coast.

Statistics:

  • West Texas Intermediate crude oil futures for May delivery traded in a range of $15.55 to $16.64/bbl on Monday.
  • May North Sea Brent futures touched a new 1994 high of $15.26/bbl.
  • Physical Dated Brent rose 27% to $15.40.
  • Russian Urals slipped to Dated Brent minus 55%.
  • Unleaded regular gasoline futures for May delivery to New York Harbor slipped 0.28% to 50.07% per gallon.
  • Wholesale unleaded prices rose 0.26% to 54.46% per gallon.
  • May No. 2 heating oil futures declined 0.37% to 47.03% per gallon.
  • Wholesale No. 2 increased 0.42% to 51.42% per gallon.
  • May natural gas futures gained 3.1% to $2.156/MMBtu.

Sources:

  • The Oil Daily in cooperation with Computer Petroleum Corp.
  • Organization of Petroleum Exporting Countries

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