Crude oil volatile on Tuesday, May 31
Crude oil had a volatile trading day on Tuesday, May 31, 2016. At 1:40 PM EDT, WTI crude for July delivery traded at $49.67 per barrel, a gain of 0.67%. Brent crude traded at $50.48 per barrel, a gain of 0.18%.
Although crude oil saw mixed trading in the early morning session, it traded higher after the release of the Cushing inventory report by Genscape. However, crude declined as the UAE oil minister, Suhail bin Mohammed al-Mazroui, stated that he was happy with the higher oil prices.
Cushing supply declined last week
According to a report released by industry research group Genscape, the Cushing supply declined in the last week. These inventories witnessed a weekly drop of 686,700 barrels. This has boosted the industry sentiment and helped WTI and Brent crude recover on Tuesday, May 31.
To learn more about how crude oil performed in the day’s early morning trading session, please read Crude Oil Remains Mixed on Tuesday Morning.
Crude oil poised for four straight months of gains
Crude oil is all set to post gains for the fourth consecutive month, with WTI crude gaining more than 7% and Brent crude gaining more than 4%. The recent supply disruptions in Canada, Nigeria, Venezuela, and Libya helped crude oil prices to rise higher and even cross the resistance level of $50 per barrel.
Although some of the supply disruptions have subsided, the attacks on the oil assets and infrastructure in Nigeria are still supporting oil prices. In the last few weeks, these disruptions were able to take more than 3.5 million barrels per day from the supply.
The Market’s focus has now shifted to the OPEC meeting, which is scheduled to take place in Vienna on Thursday, June 2. At 2:01 PM EDT, crude oil producers Carrizo Oil & Gas (CRZO) and Canadian Natural Resources (CNQ) gained 1.4% and ~2.2, respectively.