Oil Lingers Below $50 With Refiners Slowing, Producers Hedging
- Refineries set to begin seasonal work, lowering crude demand
- Producers coming to market to lock in profits at current level
Does OPEC Have Any Fight Left in It?
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Oil hit a wall again, failing to sustain a rally above $50 a barrel for a third straight session.
That’s partly because demand typically drops this time of year as many crude-processing plants shut down in the fall for maintenance. But it’s also because producers are coming to the futures market whenever West Texas Intermediate prices approach $50 to lock in profits. While that protects them against a slump, it also makes it more difficult for futures to rise further. Meanwhile, for the third time this month, a hurricane is heading toward the Caribbean.