Even with weak economic data such as China’s industrial and consumption data, optimism that Shanghai’s phased unblocking is expected to boost demand prospects, coupled with the Organization of the Petroleum Exporting Countries and allies (OPEC+) sticking to the existing pace of production increases, crude oil futures on Monday (16th) ) both closed higher, and tight supplies also continued to push U.S. gasoline prices to record highs.
energy commodity prices
- West Texas Intermediate (WTI) futures for June delivery rose $3.71, or 3.4%, to settle at $114.20 a barrel, after falling as low as $108.16 a barrel.
- Brent crude for July delivery rose $2.69, or 2.4%, to settle at $114.24 a barrel, after hitting an intraday low of $108.84.
- Natural gas futures for June delivery rose 3.8% to settle at $7.956 per million Btu.
- Gasoline futures for June delivery rose 1.6% to settle at $4.0229 a gallon, a record close.
- Thermal fuel futures for June delivery fell 0.4% to settle at $3.9075 a gallon.
market driving force
Crude oil futures tumbled more than 2 percent, in part due to weak economic data from China. Affected by the epidemic prevention and control, China’s industrial and consumption indicators both recorded their worst performance in two years in April.
At the same time, Shanghai began to resume business and markets in stages on Monday, opening up department stores, supermarkets and catering services in an orderly manner, boosting market optimism about the recovery of demand prospects.
U.S. gasoline futures hit another record closing high on Monday. Warren Patterson, head of commodity strategy at ING, said U.S. gasoline inventories have fallen markedly over the past few weeks and are well below the five-year average, indicating a severe supply squeeze that persists even as refiners boosted operating rates last week to improve supply.
As oil prices intensify global inflationary pressures, the market is also concerned about the attitude of the Organization of the Petroleum Exporting Countries and its partners (OPEC+) to increase the scale of production increases.
Saudi Arabian Energy Minister Abdulaziz bin Salman believes that with insufficient refining capacity, oil prices, including gasoline, will remain expensive even if major oil exporters increase production.
The remarks were echoed by Bahrain’s oil minister, who said OPEC+ is likely to continue to increase production by 432,000 barrels per month.