Crude and Refined Product Prices Increased the Week of May 8
Oil price movement
On May 8, Brent oil closed at $65.39 per barrel, and West Texas Intermediate (or WTI) crude oil closed at $59.39 per barrel. Brent oil fell ~1.6%, compared with last week’s close of $66.46 per barrel on May 1, and WTI closed up ~0.4% over the May 1 price of $59.15 per barrel.
Lower prices hurt the margins of energy companies like ConocoPhillips (COP), Hess Corporation (HES), Oasis Petroleum (OAS), and Anadarko Petroleum (APC). ConocoPhillips, Hess Corporation, and Anadarko Petroleum are components of the iShares Global Energy ETF (IXC) and make up ~5.5 % of the ETF.
Daily price movement
WTI crude prices fell slightly on Monday, May 4, in comparison to the previous market close on Friday, May 1. WTI fell ~0.4% to settle at $58.93 per barrel, while Brent oil remained flat and settled at $66.45 per barrel.
WTI prices retreated after an Iraq oil ministry spokesman stated that in April, Iraq exported the most oil in more than 30 years. This pressured prices even as supply concerns continued to weigh on them.
On Tuesday, May 5, US oil surged above $60 per barrel for the first time since last December.
Prices were supported by speculation that US supplies will ease, due to a decline in drilling activity. You can learn more at Week Ending May 1: US Rig Count Is the Lowest since June 2009. A weaker dollar also supported this rally, which makes dollar-priced oil commodities more affordable to foreign currency holders.
WTI rose ~2.5% to settle at $60.40 per barrel on May 5, while Brent oil increased 1.6% to $67.52 per barrel.
The rally continued into Wednesday, May 6, after a bullish inventory report released by the EIA (Energy Information Administration). Read more at Another Bullish Crude Inventory Report Boosts Optimism.
WTI increased by ~1% to settle at $60.93 per barrel, while Brent increased by ~0.4% to settle at $67.77 per barrel on Wednesday. Both benchmarks touched their 2015 peaks last Wednesday.
On Thursday, May 7, however, a stronger dollar erased these gains. WTI tumbled by 3.2% to settle at $58.94 per barrel. Brent oil declined by almost the same amount, falling ~3.3% to settle at $65.54 per barrel.
On Friday, May 8, WTI rallied slightly after the US Labor Department reported a decline in the unemployment rate—a bullish indicator for oil demand. WTI increased 0.8% to settle at $59.39 per barrel. However, Brent fell further by 0.2% to settle at $65.39 per barrel, weighed down by a stronger dollar.
Continue to the next part to read about the trends in the WTI–Brent spread.
Continue to Prior Part
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