CRUDE SUMMARY: NYMEX supported by US housing data

23 May 2014 20:19 Source:ICIS News

LONDON (ICIS)--Crude futures opened on Friday roughly where they settled in the previous session.

Brent lingered around this level until the European open, when both contracts began to climb steadily, before they both plummeted into negative territory.

However, prices soon recuperated given last week’s unexpected drop in US crude inventories, the turmoil in Libya, maintenance in the North Sea and the Ukrainian elections on Sunday.

By noon, both contracts had surged to a peak but they began to weaken ahead of the US open.

After the US markets opened, both contracts continued to weaken steadily, where Brent fell into negative territory briefly before bouncing back up. The NYMEX managed to remain in positive territory as US statistics were released showing a rise in new home sales in April compared with the previous month.

Although Brent managed to surge back into positive territory and set a fresh intra-day high, the contract then fell quickly back into negative territory while the NYMEX traded sideways during the volatility.

Towards the close, Brent was climbing while the NYMEX continued to move sideways.

July Brent closed the day up 18 cents/bbl at $110.54/bbl, having traded between $110.25/bbl and $110.67/bbl.

July West Texas Intermediate (WTI) closed the day up 61 cents/bbl at $104.35/bbl, having traded between $103.64/bbl and $104.50/bbl.

By Kawai Wong