Oil quotes on Monday have shown an insignificant fall. Brent crude at 10:25 EET was selling at $65.33, whilst WTI with June delivery was trading at $59.81 per barrel. At last week’s close, North Sea oil on June contracts was trading at $65.51 a barrel and the price of light crude with delivery in June at the close of the New York session was $59.85 per barrel.
Oil prices are continuing their correction, despite the statistics. At last week’s close, oil reserves in the US had fallen by 2.67 million barrels with distillate reserves falling by 2.77 million. The total number of drilling rigs (gas and oil), in the week ending 22nd May, fell by 3 to 885. This is 972 less than last year. The number of oil drilling rigs in the US fell by one to 659; against a fall of 8 the week earlier. The changes are insignificant, so the market reaction was only slight.
Brent is unlikely to overcome the $70 per barrel marker by the end of the month. It’s probable that investors will wait and see what the outcome of OPEC’s meeting is and then have a go at the resistance. That is, if the cartel gives reason for it.
Brent will trade in the corridor of $63-68.5 a barrel this week, whilst WTI will be sat somewhere between $57.7-62 per barrel.