The benchmark crude WTI fell 3.4% to settle at $71.83 per barrel in today’s trading session. Latest numbers from the Energy Information Administration indicate a decrease of 12.5 million barrels in U.S. crude inventories for the week ending May 19.
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The significant drawdown had initially helped prop up prices and gained significance after Prince Abdulaziz bin Salman, the Minister of Energy for Saudi Arabia, warned oil short sellers to “watch out” at the Economic Forum in Doha. Consequently, all eyes will now be on the crucial OPEC meeting in the first week of June.
Meanwhile, natural gas also dipped 3.79% to close at $2.307 per MMBtu today. Latest data from the Energy Information Administration show natural gas inventory in the U.S. rose by 96bcf to 2,336bcf during the week ending May 12. The figure was a tad below the street’s expected rise of 108bcf for the period.
Goldman Sachs is expecting a positive momentum in commodities despite recent price weakness and remains favorable on Occidental Petroleum (NYSE:OXY) and ConocoPhillips (NYSE:COP) in the energy space.
Despite recent gains, the United States Oil Fund ETF (USO) still remains nearly 3% lower so far this year. Here is a list of energy stocks that can be influenced by the latest developments in the energy markets.
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