Crude Oil Futures Prices Drop as Concerns Pressure Market
Crude oil futures prices were lower ahead of midday Tuesday as concerns continued to put pressure on the market. The NYMEX April West Texas Intermediate (WTI) contract saw a slight increase of 11 cents, reaching $78.85 per barrel at about 11:30 a.m. However, the May and June contracts for European benchmark Brent crude each saw a decrease of 9 cents, settling at $82.71 and $81.99 per barrel, respectively.
Gasoline futures led the decline, with the NYMEX April RBOB contract dropping by 3.41 cents to $2.5516 per gallon, and the May contract falling by 3.25 cents to $2.5444 per gallon. Diesel futures also saw a decrease, with the NYMEX April ULSD contract down by 1.36 cents to $2.6336 per gallon, and the May contract down by 0.91 cents to $2.5881 per gallon.
Despite the muted activity in oil prices, the refined products market experienced losses of multiple cents per gallon. U.S. refinery output remains constrained due to seasonal maintenance, contributing to the decline in prices.
The decision by OPEC and its allies to extend voluntary production cuts through at least the first half of the year did not have a significant impact on the market, as the tighter supply had already been priced into contracts. However, the American Petroleum Institute is scheduled to release its weekly inventory data later on Tuesday, with the Energy Information Administration providing its petroleum supply and demand numbers on Wednesday morning.
Analyst comment
Neutral news. The crude oil futures prices are facing pressure due to concerns in the market. Gasoline and diesel futures are also experiencing decreases. The decision to extend production cuts by OPEC and its allies has already been priced in. The market will be waiting for inventory data from the American Petroleum Institute and supply and demand numbers from the Energy Information Administration.
