Futures Movers: Oil pulls back after 6th straight weekly rise

Posted By: EN Todayon: August 07, 2023In: General Energy News, Oil & Gas News

Oil futures pulled back from nearly four-month highs early Monday, consolidating as the U.S. dollar strengthened versus major rivals.

Price action

West Texas Intermediate crude for September delivery
CL00,
-1.04%

WBS00,
-1.10%
fell 83 cents, or 1%, to $81.99 a barrel on the New York Mercantile Exchange.
October Brent
BRN00,
-0.99%

BRNV23,
-0.99%,
the global benchmark, was down 82 cents, or1%, at $85.42 a barrel on ICE Futures Europe.
Back on Nymex, September gasoline
RBU23,
+0.13%
rose 0.2% to $2.789 a gallon, while September heating oil
HOU23,
-0.49%
fell 0.8% to $3.039 a gallon.
September natural gas
NGU23,
+3.03%
was up 2.1% at $2.632 per million British thermal units.

Market drivers

Oil ended last week on a strong note, finishing Friday at the highest since mid-April and logging a sixth straight weekly decline. Crude was boosted last week as Saudi Arabia extended a production cut of 1 million barrels a day that took effect in July through the end of September.

Expectations for a supply deficit in the second half of 2023 and fading fears of a recession have helped fuel a bounce by crude, though analysts said jitters over a potential slowdown haven’t been fully erased.

“Looking ahead, WTI is testing key 2023 price resistance but has not yet definitively broken out to the upside,” wrote analysts at Sevens Report Research. “And until we get new highs, the outlook for oil will remain neutral as investors continued to weigh bullish, tight physical market dynamics right now against lingering recession worries.”

Meanwhile, a firmer tone for the dollar, with the ICE U.S. Dollar Index
DXY
up 0.3%, was seen keeping a lid on commodity prices. A stronger dollar makes commodities priced in the unit more expensive to users of other currencies.