The light, sweet crude price for June delivery fell by more than $1/bbl for a second consecutive day on the New York market May 3 pending release of the weekly government inventory report on oil and products.
Analysts and traders noted oil futures have declined this week largely on concerns that US oil inventories will reach a new record high. The US Energy Information Administration was schedules to release the Petroleum Status Report May 4.
A Wall Street Journal survey showed that analysts expected the EIA to report an increase of 1.2 million bbl in oil supplies for the week ended Apr. 29.
Analysts also expected EIA to report that gasoline inventories shrank and stockpiles of distillates, including diesel fuel and heating oil, were unchanged, the WSJ said.
Barclay’s forecast 2016 Brent prices will average $44/bbl, a $5 upward revision from Barclay’s earlier forecast.
“Prices will likely remain volatile, caught between a bearish narrative of prompt global oversupply and a bullish narrative of market balancing as soon as late 2016,” said Barclay’s analyst Miswin Mahesh in a research note.
The NYMEX natural gas contract for June gained 4.4¢ to nearly $2.09/MMbtu. The Henry Hub price was $1.92/MMbtu, up 1¢.
Heating oil for June delivery fell 2.2¢ to a rounded $1.33/gal. The price for reformulated gasoline stock for oxygenates blending for June dropped 5¢ to a rounded $1.51/gal.
The Brent crude contract for July on London’s ICE was down 86¢ to $44.97/bbl. The August contract was down 87¢ to $45.37/bbl. The May gas oil contract was $394/tonne, down $5.75.
The Organization of Petroleum Exporting Countries basket of crudes was $41.02/bbl, down $1.45.
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