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Crude Oil Remains Mixed on Tuesday Morning

Val Kensington

Sneak Peek: How Are Commodities Performing on May 31?

Crude oil’s performance this morning

Crude oil remains mixed on Tuesday morning. The Market is waiting for OPEC’s (Organization of Petroleum Exporting Countries) meeting and economic releases from China. At 4:35 AM EST on May 31, the crude oil futures contract for July delivery was trading at $49.48 per barrel—a gain of 0.28%. Brent crude was trading at $50.02 per barrel—a fall of 0.68%.

China’s manufacturing data and the US dollar

China’s manufacturing PMI data are scheduled to release at 9:00 PM EST on May 31. The data are expected to provide information about China’s economic health. Considering that China is one of the largest crude oil consumers, the economic situation in China will impact crude oil prices. On the other hand, the stronger dollar is keeping pressure on crude oil prices. Comments from several Fed officials increased the chances of an interest rate hike in June. The stronger dollar hurts oil-denominated commodities like crude oil.

Market waits for OPEC’s meeting

According to recent reports, Iraq is planning to increase its market share by increasing its crude oil shipments. Iraq plans to increase its shipping volume by 5 million barrels in June. In contrast, major producers Saudi Arabia, Iran, the United Arab Emirates, and Kuwait are also in line to increase their supplies in 2016. Recently, the recovery in oil prices decreased the expectations on any changes related to production. According to the report released by Baker Hughes on May 27, the oil rig count fell by two during the reporting week. The oil rig count reached 316.

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Last week, crude oil producers Carrizo Oil & Gas (CRZO), Canadian Natural Resources (CNQ), British Petroleum (BP), and Total S.A. (TOT) gained 0.61%, 2.6%, 2.9%, and 3%, respectively. The SPDR S&P Oil & Gas Exploration and Production ETF (XOP) gained 2.6% last week.

In the next part, we’ll discuss how copper, gold, and silver performed this morning.

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