Crude Oil WTI Futures Market News and Commentary
June WTI crude oil (CLM22) on Monday closed up +3.71 (+3.36%), and June RBOB gasoline (RBM22) closed up +6.51 (+1.64%).
Crude oil and gasoline prices Monday posted moderate gains, with crude climbing to a 1-1/2 month high and RBOB gasoline futures soaring to a new all-time nearest-futures high (data from 2003). A weaker dollar Monday and concern about tightness in global energy supplies are supporting crude prices.
Reduced global refining capacity has led to tight fuel supplies and continues to push gasoline prices up to new record highs. Energy consultant Turner, Mason & Co. said the U.S. refining capacity has fallen by 1.0 million bpd, or about 5% of total U.S. capacity, since the beginning of the pandemic. Also, global refining capacity has shrunk by -2.13 million bpd. U.S. heating oil and diesel fuel supplies remain extremely tight as Wednesday's weekly EIA data showed that U.S. distillate supplies fell to a 17-year low the week of May 6.
The recent surge... Read more