Oil eases on Iran concern after hitting two-year high above $72

0
127
imageCommodities1 hour ago (Jun 07, 2021 20:20)

© Reuters. FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson/File Photo

By Laila Kearney

NEW YORK (Reuters) – Oil prices pulled back on Monday after touching two-year highs on expectations of improved demand and OPEC producers keeping supply curbs in place.

Prices retreated from session highs early, and analysts cited pressure from Chinese data showed crude oil imports fell to a year’s low in May.

“That took away some of the enthusiasm that the oil bulls had seen,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.

Brent crude settled at $71.49 a barrel, falling 40 cents after hitting $72.27 a barrel, its highest since May 2019.

U.S. West Texas Intermediate settled at $69.23 a barrel after touching $70 for the first time since October 2018.

Investors may have sold some contracts to take profits when WTI hit the round number of $70, said Jim Ritterbusch of Ritterbusch and Associates.

“Regardless, fresh highs suggest sustainability of this bull move with some higher values likely lying ahead,” Ritterbusch said.

Crude has risen for two weeks, with Brent up by 38% this year and WTI rising 43%, helped by nascent recovery from pandemic-related demand disruptions and supply curbs by the Organization of the Petroleum Exporting Countries and allies.

The producer group known as OPEC+ has boosted oil prices by sticking to supply restraints through July. On Monday, OPEC Secretary General Mohammad Barkindo said OPEC+ expects inventories to fall further in coming months.

Analysts expect oil prices to remain buoyant, with pullbacks brief, due to increased global demand following decisions by the United States and Europe to loosen COVID-19 restrictions, while India has begun to ease its latest lockdown.

“With some improvement in the pandemic situation in India and the recovery in the U.S., China and Europe remaining on track, oil should remain a buy on dips,” said Jeffrey Halley, analyst at brokerage OANDA.

(Additiona reporting by Alex Lawler and Florence Tan; Editing by Marguerita Choy and David Gregorio)

Oil dips on profit-taking after logging two-year high on OPEC+ curbs

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

LEAVE A REPLY

Please enter your comment!
Please enter your name here