Oil prices decline for fourth session ahead of busy travel plans

Thursday marked the fourth straight session of declines in crude oil prices ahead of the hectic Memorial Day weekend travel period. This week, U.S. crude oil has dropped 3%, while the global standard, Brent, has dropped almost 4%.

WTI’s July contract price is $76.87 per barrel, a decrease of 70 cents or 0.9%. US crude oil has increased 7.2% so far this year. The July contract price for Brent crude was $81.36 a barrel, a decrease of 54 cents or 0.66%. The global benchmark is up roughly 5.6% so far this year.

RBOB Fuel June contract increased 0.06% to $2.46 per gallon. Petrol futures are up 17.4% so far this year. June contract for natural gas trades $2.65 per thousand cubic feet, a 6% decrease. Natural gas has increased 5.6% so far this year.

Since their peak in April, oil prices have been trapped in the $3 range as traders return their attention to supply and demand fundamentals and concerns of a wider war in the Middle East fade.

This month’s price breakout has been difficult because investors are still wary that higher-for-longer interest rates would impede the US economy and reduce demand for oil. After a relatively mild winter in several regions of the Northern Hemisphere, traders are also concerned about an increase in global oil inventories.

However, the oil market is considered to be in deficit, and some analysts predict that Brent will reach $91 per barrel in the upcoming months. Above the long-term growth rate of 1.2 million barrels per day, there will be a robust 1.5 million barrels per day of demand growth in 2024.