Futures on crude oil closed with a loss of USD 2 on Monday amid measures alleviating the effects of Louisiana flood which eased concerns over oil refinery plants. A 5% fall in gasoline prices also influenced oil futures.
By the end of NYMEX trades futures on WTI crude oil dropped by USD 2.28 (2.3%) down to USD 97.37 per barrel. Earlier during the session futures reached an intraday high of USD 96.90 per barrel which is a May 6 low.
Market participants notice that this week is likely to show dominance of bearish sentiment on the energy resources market. Yet, last week futures on oil grew by 2.5% which was the best indicator since April amid concerns over the flood in South states of America where most refinery facilities are located.
However, measures taken by the national authorities slightly calmed the market down. Baton Rouge and Placid Refining Co.’s Port Allen refinery plants owned by Exxon Mobil the production of which constitutes 505 000 barrels per day will not be affected by the flood.
According to AAA analytical agency, the US gasoline prices decreased to USD 3.955 per gallon on Sunday.
Market participants say that the prices can decline further if the governmental data on oil, gasoline and oil residue reserves will point at further growth on Wednesday.
Investors suppose that New-York FRS data on production falling rather short of expectations highlighted the unstable economic situation which pumped the pressure on oil futures up. Eurozone debt troubles were the centre of attention after IMF head Dominique Strauss-Kahn was arrested. According to traders, it may well undermine the ability of the IMF to contribute to settling the eurozone debt crisis.
