Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Crude Oil Weakens; Overall Tone Remains Positive

Commodities May 27, 2021 09:09AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse -- Crude oil prices fell Thursday, after four days of gains, as traders fretted about the potential for a rise in Iranian supplies even after a bigger-than-expected draw in U.S. crude oil supplies.

By 9:10 AM ET (1410 GMT), U.S. crude futures traded 0.2% lower at $66.09 a barrel, while the international benchmark Brent contract fell 0.4% to $68.47.

U.S. Gasoline RBOB Futures fell 0.4% at $2.1425 a gallon.

“The potential for a return of Iranian oil supply into the market has been keeping oil prices from gaining further,” said analysts at ING, in a note.

World powers continue to conduct talks in Vienna aimed at potentially reviving a nuclear agreement with Iran. A deal could pave the way for the lifting of sanctions allowing the Persian Gulf country to export its oil reserves, the world’s fourth largest, once more.

The additional supply, potentially around one million barrels per day, will undoubtedly be a major issue for a June 1 meeting of the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+. 

That said, the general tone surrounding the crude market remains positive as the global economy, and the U.S. in particular, recovers from the pandemic.

The number of Americans filing new claims for unemployment benefits dropped more than expected last week, falling to 406,000 for the week ended May 22, compared to 444,000 in the prior week. That was the lowest since mid-March 2020 and kept claims below 500,000 for three straight weeks.

Wednesday’s U.S. crude oil supply data from the Energy Information Administration showed a draw of 1.662 million barrels for the week to May 21, while there was also a 1.745-million-barrel draw in U.S. gasoline inventories, with U.S. fuel demand progressing towards a return to pre-Covid-19 consumption levels.

“Physical demand has been improving in both Europe and the U.S. as a slowdown in new Covid cases has been pushing up mobility. The start of the summer driving season in the U.S. from next week onwards could further support crude oil demand in the country,” ING added.

Even India, the world’s third-largest oil importer, has reported a marked slowdown in new cases over the past few weeks, which could help ease some of the mobility restrictions next month. 

One potential problem could come from the corporate sector. Royal Dutch Shell (LON:RDSa) was ordered by a Dutch court to drastically deepen its planned greenhouse gas emission cuts, while both Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) suffered shareholder rebellions over the oil giants not moving fast enough to diversify away from fossil fuels.



Crude Oil Weakens; Overall Tone Remains Positive

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Vlad Lozovskiy
Vlad Lozovskiy May 27, 2021 11:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
slips, falls, weakens.  it is still doing fine and smiling.  The only trend is up thanks to Biden
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email