Crude futures extend gains in after-market trading after API stockpile report

Chief Investment Office, Newsfeed16 Jun 2021

Oil climbed as a chorus of prominent traders in the crude market said prices will continue to rise after a nearly 50% rally so far this year.

Futures in New York advanced 1.8% on Tuesday (15 June) to the highest level since October 2018. At the FT Commodities Global summit, Glencore Plc and Vitol Group both said they see further gains in oil.

Crude futures extended gains in after-market trading after the industry funded American Petroleum Institute reported US crude stockpiles fell 8.54m barrels last week (ended 11 June). That would be the largest crude supply decline since January if US government data confirms it on Wednesday.

Further along the oil futures curve, there are signs of market tightness. The difference between the nearest two West Texas Intermediate (WTI) December contracts on Tuesday closed at more than USD6.00 a barrel, the strongest close since September 2019, a sign traders are betting on a stronger market. – Bloomberg News.

WTI for July delivery added 1.75% to USD72.12 a barrel in New York. Brent for August settlement rose 1.55% to settle at USD73.99 a barrel.