Bullish Week Ends Up Quietly

Daily Settlement Prices 041316

Daily Settlement Prices

The oil market ended a bullish week on an up note, with the front month WTI contract posting a dollar gain (and three dollars for the week). Friday, however, did not produced any oil-newsworthy notes. Part of the week’s price gain was in the shift in contracts from May to June (and the dollar-plus contango), but upward momentum is clearly on the side of oil (as well as equities for that matter).

As domestic crude oil inventories continue to post new, record all-time highs, the market should soon see draws in crude oil stocks as peak refinery maintenance season is ending and the strong appetite for refining crude will return (thus eating into the stock surplus). Though the dollar has also been stagnant-to-weak, we need to pay attention to its relative worth, as well. Often times the greenback’s value plays a bigger role in commodity price changes than market fundamentals do.

June WTI traded in the black virtually all day on Friday, even without any substantial news to push it higher. The market did dip on Thursday, on some relative strength in the dollar (and, perhaps, some light profit taking), but on Friday those gains were largely erased early in the day.

Trading volume was light, almost giving the appearance of a summer Friday, and the prompt WTI contract stayed in the range of $43 – $44 throughout the day. At the settle, a busy week ended quietly, with June WTI closing at $43.73 (up 55-cents).

RBOB and Heating Oil each posted a penny gain on Friday, in the process setting new 2016 highs for both products. Each of the May contracts were up seven cents for the week (and both expire this Friday).

Monthly Settlement Prices 042216

Published by PAPCO, Inc. (PAPCO)

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