• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 9 hours The Truth about Chinese and Indian Engineering
  • 2 hours Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 10 hours The World is Facing a Solar Panel Waste Problem
  • 2 days The Core Issue Of US Chaos..Finally disclosed
  • 7 hours Pompeo upsets China; oil & gas prices to fall
  • 23 hours Rational analysis of CV19 from Harvard Medical School
  • 14 hours China's impending economic meltdown
  • 9 hours Why Oil could hit $100
  • 2 days Open letter from Politico about US-russian relations
  • 13 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 19 hours Brent above $45. Holding breath for $50??
  • 13 hours Sell Natural Gas Benefits to Grow the Market!
  • 12 hours Trump Suggests Delaying Election Amid Fraud Claims
  • 2 days Russia Trying To Steal COVID-19 Vaccine Data, Say UK, U.S. and Canada
Will Low Prices Save Long-Term Oil Demand?

Will Low Prices Save Long-Term Oil Demand?

Will low gasoline prices will…

Surge In Gold Prices Could Be Bad News For Oil

Surge In Gold Prices Could Be Bad News For Oil

The ratio between gold and…

Why Oil Remains Stuck At $40

Why Oil Remains Stuck At $40

Oil prices posted gains once…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

U.S. Oil Prices Steady As June Contract Expires

U.S. oil prices continued rising early on Tuesday morning, the day on which the June contract expires, before falling slightly in what was a much smoother and uneventful trade compared to last month’s dramatic plunge into negative prices.

The relatively smooth day to the expiry signals that the fundamentals with supply, demand, and storage availability have improved since last month.

As of 11:42 a.m. CDT on Tuesday, prices fell back a bit with WTI Crude trading at $31.69, down by 0.41 percent on the day, while Brent Crude prices were down 0.95 percent at $34.45.

Tuesday’s trading session is shaping up to be a non-event, even if today is the expiry date of the front-month June contract of WTI Crude futures and a few weeks ago analysts were warning of another dip into negative prices after the U.S. benchmark prices plummeted by 300% to settle at -$37.63 per barrel a day before the May futures contract expired last month.

Oil prices have been rising for two weeks, and jumped by 11 percent to a two-month high of over $32 on Monday, amid signs of demand recovery and accelerated production cuts from all oil producers.

Last week, the Energy Information Administration reported a crude oil inventory decline of 700,000 barrels for the week to May 8—the first drop in commercial inventories in 16 weeks. Related: Should U.S. Shale Be Worried About A Chinese Takeover?

Oil demand in the world’s top oil importer, China, is said to have rebounded to nearly pre-coronavirus levels. Gasoline demand in the United States stood at 7.398 million bpd for the week to May 8, and although this was still below the 9.148-million bpd demand for the same week last year, the number was a clear improvement from the 5.86-million-bpd demand just two weeks prior, EIA data shows. 

Referring to the WTI Crude contract rollover today, Steen Jakobsen, Chief Investment Officer at Saxo Bank, said on Monday:

“The expiry tomorrow of the June WTI contract is expected to be a non-event after stockpiles at the key storage hub in Cushing, Oklahoma, shrank last week.”

Yet, there is a short-term risk to the oil price rally, and this is producers rolling back the cuts, especially in the U.S. with the price back above $30 a barrel, Jakobsen said.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News