Breaking News
Investing Pro 0
Last Call for Cyber Monday! Save Now on Claim 60% OFF

Crude retreats from yearly highs, as Iran, Cushing remain in focus

Published May 04, 2015 02:46PM ET Updated May 04, 2015 02:53PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
WTI crude fell below $59 a barrel Monday, while brent remained above $66 -- Crude futures fell mildly on Monday after approaching near six-month highs, as investors locked into profits from last month's extended rally.

On the New York Mercantile Exchange, WTI crude for June delivery fell 0.25 or 0.42% to 58.90, extending Friday's losses. Earlier in the session, Texas Light Sweet futures rose to $59.75, approaching a key technical level at $60 a barrel. WTI crude futures have not been above $60 since just before Christmas. On the Intercontinental Exchange (ICE), brent crude for June delivery dipped 0.07 or 0.11% to 66.39, after reaching $67.08 earlier in the session – its highest level since Dec. 9. The spread between the U.S. domestic and international benchmarks of crude stood at $7.49, slightly below Friday's level of $7.63 at the close of trading.

Last month, crude futures spiked by more than 18% as declining production eased fears of global oversupply. Crude is still down, however, by more than 40% after reaching triple digits last summer.

On Monday, Genscape Inc., a leading global provider of real-time data for commodity and energy markets told clients that crude stockpiles at the Cushing Oil Hub in Oklahoma fell by 100,000 for the week that ended April 31. It came after the Energy Information Administration (EIA) reported that supply levels at Cushing declined by 500,000 last week to 61.7 million barrels, marking its first weekly decline in 2015. Last month, crude inventories at Cushing, the largest storage facility in the U.S., reached record levels amid cascading production at shale fields nationwide.

Since then, shale output has leveled off reducing fears that Cushing could reach full storage capacity by the start of the summer. Speaking at the Sohn Investment Conference in New York, Greenlight Capital CEO David Einhorn railed against fracking stocks, zeroing in on Irving, Texas-based Pioneer Natural Resource Co., an independent oil and gas company.

"We object to oil fracking because the investment can contaminate portfolio returns," Einhorn said. "We think that in the current environment Pioneer has a negative return on capex."

As a result, shares in Pioneer Natural Resources tumbled 3.17 or 1.85% to 168.39, after hitting a session-low of 162.50.

Elsewhere, the U.S. Senate reportedly forged ahead with debate on an Iranian nuclear bill increasing the likelihood that the bill could come up for vote later this week. On Sunday, Politico reported that Republican leaders had moved close to thwarting Sen. Tom Cotton's (R, Arkansas) efforts to upend bipartisan legislation paving the way for passage of the bill. In a bit of surprise, Cotton proposed an amendment last week that would require Iran to disclose its nuclear history and close all of its nuclear facilities as part of the bill.

Last month, Reuters reported that Iran has 30 million barrels of oil stored in offshore tankers ready for export, after the Persian Gulf nation agreed on the framework of a nuclear deal with Western powers. In addition, Facts Global Energy, an energy consulting firm, has forecast that Iranian oil exports could reach a level of 1.7 million barrels per day within 12 months of a final deal up from it current level of a million bpd.

An outflow of Iranian could depress oil prices in a global market already saturated by a glut of supply.

Crude retreats from yearly highs, as Iran, Cushing remain in focus

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.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

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.
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