Brent crude oil futures sank more than 2% on Monday, as concerns of an imminent strike on Syria eased, and traders reduced positions that had reflected fears of oil supply disruption in the Middle East.
Brent crude oil sank to its lowest mark in one week, narrowing its premium over the U.S. crude oil contract which did not fall by as much.
One can see that while the traditional 6:00 AM USDJPY buy program is just duying to resume aggressive upward momentum ignition, futures are still leery and confused by the recent post-open high beta selloffs. Then again, things like yesterday's ridiculous no news 3:30pm ramp happen and confused them even more just as momentum is about to take a downward direction.
Brent crude fell below $108 per barrel (bbl) following a one-day humanitarian truce between Hamas and Israel. Similarly, West Texas Intermediate (WTI) also hit its lowest point in the week on the back of rising gasoline inventories.
As of 7:05 am EDT, front-month futures of Brent crude were down 0.87% to $107.46 on the International Commodity Exchange (ICE). Meanwhile, front month future of WTI is down 0.6% to $101.48.
Profits from shipping oil by rail are shrinking as U.S. and global benchmarks converge to the narrowest since 2010, making pipeline deliveries more attractive and slowing the demand for train cargoes like the one that derailed and exploded in Quebec.
U.S. domestic crude-oil production exceeded imports last week for the first time in 16 years, a government report showed today.
Output was 32,000 barrels a day higher than imports in the seven days ended May 31, according to weekly data from the Energy Information Administration, the Energy Department’s statistical arm. Production had been lower than international purchases since January 1997.