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Oil dips on profit-taking after logging 2-year high on OPEC+ curbs

Commodities Jun 07, 2021 03:21PM ET
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© Reuters. FILE PHOTO: General view of oil tanks and the Bayway Refinery of Phillips 66 in Linden, New Jersey, U.S., March 30, 2020. REUTERS/Mike Segar

By Laila Kearney

NEW YORK (Reuters) -Oil prices pulled back on Monday after touching two-year highs on expectations of improved demand and OPEC producers keeping supply curbs in place.

Prices retreated from session highs early, and analysts cited pressure from Chinese data showed crude oil imports fell to a year's low in May.

"That took away some of the enthusiasm that the oil bulls had seen," said Phil Flynn, senior analyst at Price Futures Group in Chicago.

Brent crude settled at $71.49 a barrel, falling 40 cents after hitting $72.27 a barrel, its highest since May 2019.

U.S. West Texas Intermediate settled at $69.23 a barrel after touching $70 for the first time since October 2018.

Investors may have sold some contracts to take profits when WTI hit the round number of $70, said Jim Ritterbusch of Ritterbusch and Associates.

"Regardless, fresh highs suggest sustainability of this bull move with some higher values likely lying ahead," Ritterbusch said.

Crude has risen for two weeks, with Brent up by 38% this year and WTI rising 43%, helped by nascent recovery from pandemic-related demand disruptions and supply curbs by the Organization of the Petroleum Exporting Countries and allies.

The producer group known as OPEC+ has boosted oil prices by sticking to supply restraints through July. On Monday, OPEC Secretary General Mohammad Barkindo said OPEC+ expects inventories to fall further in coming months.

Analysts expect oil prices to remain buoyant, with pullbacks brief, due to increased global demand following decisions by the United States and Europe to loosen COVID-19 restrictions, while India has begun to ease its latest lockdown.

"With some improvement in the pandemic situation in India and the recovery in the U.S., China and Europe remaining on track, oil should remain a buy on dips," said Jeffrey Halley, analyst at brokerage OANDA.

(Additiona reporting by Alex Lawler and Florence Tan; Editing by Marguerita Choy and David Gregorio)

Oil dips on profit-taking after logging 2-year high on OPEC+ curbs
 

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Comments (6)
Ethan Strong
Ethan Strong Jun 07, 2021 7:12PM ET
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I took a very nice profit last week via FANG's nice move. Took on a new position w/COP for a new swing.
Eduff San
Eduff San Jun 07, 2021 4:13AM ET
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DOnt believe, the news is fake. The price is still high and more higher
Jokers R Us
Jokers R Us Jun 07, 2021 1:48AM ET
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If we didn't have a dollar backed by the military and oil we wouldn't need to rely on foreign ********states for oil.
Michael Dell
Michael Dell Jun 06, 2021 11:52PM ET
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Iran already has nuclear weapons
Steve Blevins
Steve Blevins Jun 06, 2021 10:34PM ET
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This is all Biden's fault.
Joel Schwartz
Joel Schwartz Jun 06, 2021 10:34PM ET
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Trump pulled out of the nuclear deal because he wanted an enemy. Dictators need enemies.
robert morris
XcaliberTrading Jun 06, 2021 10:16PM ET
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Biden stops America's energy independence and slows all drilling. This is to please foreign masters and to get paid handsomely for starting America back to buying oil instead.
Jokers R Us
Jokers R Us Jun 06, 2021 10:16PM ET
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We need to export dollars it's not about demolishing domestic oil companies
 
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