June Crude Oil closed up 0.96 at 48.80. This was 1.05 up from the low and 0.86 off the high.

June Heating Oil closed up 1.68 at 151.01. This was 2.04 up from the low and 3.04 off the high.

June RBOB Gasoline finished up 1.59 at 159.20, 2.66 off the high and 1.43 up from the low.

June Natural Gas finished down 0.07 at 3.36, 0.05 off the high and 0.02 up from the low.

 

As indicated in early commentary today, we are surprised at the ongoing strength in energy prices considering the market’s lack of interest in production cut prospects earlier in the month. In other words, the trade appeared to be accepting of a May 23rd extension of the production cuts but apparently news this morning from Saudi Arabia and Russia that they continue to expect a reduction extension agreement was re-embraced by the trade. On the other hand, the trade might have been emboldened by talk of a further longer-term production cut agreement.