NYMEX Petroleum Futures Decline Amid Bearish Inventory Data

Crude oil and refined product futures are down after bearish federal inventory data was released. The NYMEX September West Texas Intermediate oil contract is $62.28/bbl, down 89cts, while the September ULSD contract is down 2.73cts to $2.2168/gal. Gasoline futures are posting more modest declines. Markets are also facing headwinds from a bearish monthly report by the International Energy Agency and uncertainty over the outcome of a meeting between President Trump and Russian President Vladimir Putin.

Crude oil and refined product futures have experienced a notable decline following the release of bearish federal inventory data. The NYMEX September West Texas Intermediate (WTI) oil contract fell to $62.28 per barrel, a decrease of 89 cents, while the September Ultra-Low Sulfur Diesel (ULSD) contract dropped by 2.73 cents to $2.2168 per gallon. Gasoline futures also registered more modest declines.

The market's downturn was further exacerbated by a bearish monthly report from the International Energy Agency (IEA), which indicated a significant increase in global oil inventories. Additionally, uncertainty surrounding the outcome of a meeting between President Trump and Russian President Vladimir Putin added further headwinds to the market.

The CME Group's Heating Oil futures, which are traded over 180 million barrels daily on NYMEX, have seen their average daily volume exceed 170,000 contracts per month [1]. The futures are currently traded in 94 different countries, reflecting their global significance. The CME Group Volatility Index (CVOLTM) for Heating Oil, a robust measure of 30-day implied volatility derived from options on NY Harbor ULSD futures, provides traders with forward-looking risk expectations.

In response to the recent market developments, traders are closely monitoring the upcoming OPEC meeting to gauge the potential impact on oil prices. The NYMEX WTI Crude Oil option prices are being used to stay updated on the probabilities of certain outcomes of the next OPEC meeting [2].

As the market continues to navigate these challenges, investors and financial professionals should remain vigilant and consider the potential implications of geopolitical events and inventory data on oil prices.

References:
[1] https://www.cmegroup.com/markets/energy/refined-products/heating-oil.html
[2] https://www.cmegroup.com/markets/energy/oil/WTI.html