by Joseph Rokop
Oil prices rallied slightly higher on Monday, getting a boost from supply disruptions in Iran and Venezuela. Crude initially broke overnight due to an increase in output from Saudi Arabia, but recovered it’s losses over the course of the pit-session to finish in the black.
The front month WTI July contract rallied 36 cents on Monday, settling at 66.10. The front month Brent August contract traded flat on the day, with no change, settling at 76.46. The WTI/Brent arb remains ballooned, settling at 10.36 per barrel.
Oil’s fall from it’s multi-year highs is on pause, as traders await the outcome of OPEC’s next meeting on June 22 in Vienna. Last week, oil bottomed out near 64.25, and has been unable to fall any lower as most fundamental and technical indicators are neutral to slightly bullish.
As we turn the corner into a new week, here’s an inside look: