In a sign that U.S. crude production is holding up, U.S. Census Bureau data showed crude oil exports from the country reached a new record high of about 662,000 barrels per day in May. Analysts said trading would likely be light Monday owing to the Independence Day holiday in the United States.
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Global oil prices eased on Monday after comments by Saudi Energy Minister Khaled Al-Falih that the market was heading towards balance were tempered by slowing demand in Asia, pockets of gasoline oversupply and signs crude output could rise.
U.S. crude’s West Texas Intermediate (WTI) futures rose $1.25, or 2.6 percent, to $49.10.
The price of crude oil seems to be losing momentum after its strong advance this year, with Brent – the global benchmark – falling back under the psychologically important $50 per barrel level.
Brent crude was down $2.44, or almost 4.9 percent, at $47.66 a barrel.
From a low only just above $27 back in January, the price of Brent crude reached nearly $53 a month ago but since then it has weakened, leaving analysts wondering whether it can rally any further.
US east coast gasoline supplies rose to a record as the US Energy Information Administration said consumption of the fuel in April was less than estimated in weekly reports.
The American Petroleum Institute (API) releases its data a day later than normal on Wednesday at 8.30pm GMT, while data from the U.S. government’s Energy Information Administration (EIA) is delayed to Thursday at 3pm GMT.
“The concerns about financial stability in the Eurozone is causing another risk-off selloff in oil”, Phil Flynn, analyst at the Price Futures Group, said in a note. The total volume traded was about 53 percent below the 100-day average.
NYMEX crude for August delivery was up 5 cents at $49.04 a barrel, after closing up 66 cents, or 1.4 percent, on Friday.
A poll for Reuters forecasts a 2.5-million-barrel draw in crude and a 1.2-million-barrel fall in gasoline inventories.
Production in Saudi Arabia, the biggest crude exporter, rose by 70,000 barrels a day to 10.33 million last month, the survey showed. Some investors say that prices around $50 could encourage new US production and cause prices to retreat.
“At below $15 a barrel, the crack is at less than half the profitability it showed this time previous year”. “Stocks, commodities, sterling are all off while USA bond and T-bills are soaring”.
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But the East Coast is the pricing point for USA gasoline futures which call for delivery to New York Harbor.
