Crude oil and refined product futures contracts saw a sharp decline at midday on Tuesday following the closure of the market on Monday for the U.S. Presidents Day holiday.
Oil Contracts
Oil contracts experienced a significant drop, with prices down by more than $1 per barrel as of noon ET. The spotlight was on the NYMEX April West Texas Intermediate crude contract, which was $1.30 lower at $77.16 per barrel. Additionally, the lightly traded March contract saw a decrease of 33 cents to $78.86 per barrel. The April Brent contract also took a hit, down $1.25 to $82.31 per barrel, while the May Brent contract was down $1.20 to $81.53 per barrel.
Diesel Futures
Diesel futures were also on the decline, particularly with the NYMEX March ULSD contract dropping by 6.25 cents to $2.7441 per gallon. The more active April contract followed suit, decreasing by 6 cents to $2.6921 per gallon.
RBOB Contracts
The NYMEX March RBOB contract saw a decline of 3.83 cents, settling at $2.2977 per gallon. Similarly, the April contract, which reflects more expensive summer blends, was down by 4.88 cents to $2.5295 per gallon.
Inventory and Reports
The American Petroleum Institute will be releasing its weekly inventory data on Wednesday due to the holiday, while the Energy Information Administration’s weekly petroleum status report will be issued on Thursday.
Market Analysis
Despite U.S. inventories increasing in response to reduced refinery operations and unplanned outages, oil prices had reached their highest levels in over a month by the end of last week. Diesel futures have been facing pressure due to weaker demand and a milder-than-expected winter leading to reduced heating oil consumption.
Leave a Reply