UPDATE 9-U.S. crude strengthens as certain stimulus measures to continue

Published 19/05/2020, 05:27
© Reuters.
LCO
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CL
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* June WTI contract up as expiry looms
* No sign of WTI plunge seen at previous month's expiry

(Adds API data)
By Jessica Resnick-Ault, OPEC+, exports, down and sharply
NEW YORK, May 19 (Reuters) - U.S. crude ended slightly
higher on Tuesday, as U.S. Treasury Secretary Steven Mnuchin
said he supported extending certain measures intended to bolster
the economy, while Brent ended lower on concerns that output
cuts might not be sufficient.
Oil has rallied for several days following numerous output
cuts from major producers to curb supplies, and as demand picks
up with governments worldwide easing restrictions on movement
put in place to stop the spread of the coronavirus pandemic.
The front-month contract for U.S. West Texas Intermediate
crude CLc1 , which expires on Tuesday, settled up 68 cents a
barrel, or 2.1%, at $32.50 a barrel. The July contract CLc2 ,
trading at vastly higher volumes, settled up 31 cents at $31.96
a barrel.
One month ago, the June contract pushed into negative
territory ahead of expiry. "It has been a best possible scenario
race away from negative prices," said Bob Yawger, director of
Energy Futures at Mizuho in New York.
Benchmark Brent crude LCOc1 was settled at $34.65 a
barrel, down 16 cents or 0.5%.
The market weakened early after Mnuchin and Federal Reserve
Chair Jerome Powell faced sharp questions at a Senate hearing,
but got another boost after Mnuchin said he was willing to
consider extending and modifying a payroll loan program for
small businesses.
Oil prices have risen in the past three weeks as states have
rolled back lockdown provisions and global output has decreased.
Another drawdown in U.S. crude stockpiles in official weekly
data to be released on Wednesday could support prices more, said
John Kilduff, a partner at Again Capital Management in New York.
The American Petroleum Institute Industry group reported a
draw of 4.8 million barrels, along with a drop in gasoline
inventories as well. Distillate stocks still rose, reflecting
weaker demand for diesel.

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