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New York – The price of West Texas Intermediate (WTI) crude oil closed up 2.93% at $77.74 per barrel on Monday, rising during the trading day, but there were no clear factors for volatility ahead of the outcome of the Federal Reserve (Fed) meeting scheduled for this Wednesday.
As of the close, the price of WTI futures contracts for July delivery on the New York Mercantile Exchange (Nymex) was a total of $2.21 higher than the closing price of the previous trading day.
This week, the market’s focus is on the Federal Reserve’s next monetary policy meeting, where the regulator will decide the direction of interest rates, and the release of the May consumer price index.
This Monday saw crude oil prices post their biggest intraday gain since February, so they are at their highest level in more than a week.
Texas was greeted this week by the decision by the Organization of the Petroleum Exporting Countries and its allies, or OPEC+, to gradually withdraw voluntary production cuts over a 12-month period starting in October.
“The decision opens the door to halting some of the voluntary production cuts that have been crucial in keeping the oil market balanced and prices high in recent years, but operators are sceptical,” analyst Tom Essaye said in his report ‘Sevens Report’ on Monday.
The latest stronger-than-expected U.S. jobs data pushed up Treasury yields and the dollar, also contributing to the price gains.
A stronger dollar makes goods priced in that unit more expensive for buyers using other currencies.
Elsewhere in the market, natural gas contracts for July delivery rose to $2.91 per thousand cubic feet, while gasoline contracts expiring in the same month rose to $2.41 per gallon.
(dynamic)
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