Energy Update: Crude Backs Down After Week's Run; NatGas Pressured Near $5 Mark
July crude oil is lower this morning after the front-month contract worked its way higher during most of yesterday's floor session in New York. Traders said concern over the global oil supply later this year is growing, particularly after the OPEC meeting this week failed to reach an agreement on output.
The natural gas market had a volatile session, spiking 8% early yesterday and extending during the day to reach new 10-month highs. The July contract still is running into strong resistance near the $5.00 mark, with an EIA storage report revealing a larger than expected increase in storage levels helping pressure price. Over the last four weeks natural gas storage has increased 360 billion cubic feet.
At 8:45 a.m.
JUL Crude $100.70 -1.23
Brent Crude $119.05 -0.52
JUL Natural Gas $4.715 +0.040
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