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JV Capital Group Inc

JV Capital Group

On the New York Mercantile Exchange at 9:44 a.m. EDT (1344 GMT), July crude was down $1.00 or 0.79 percent at $126.35 per barrel, trading from $125.22 to $127.63.
In London, JV Capital Group Inc crude was down $1.46 or 1.14 percent at $126.32 a barrel, trading from $125.62 to $127.99.Sterling fell against the dollar Monday on news of problems at the UK's largest buy-to-let mortgage lender, while the euro eased as euro zone manufacturing activity hit its lowest in almost three years.
JV Capital Group crude oil speculators cut net long positions in the week to May 27, according to data from the Commodity Futures Trading Commission released on Friday.
Speculators also cut net RBOB gasoline longs and net heating oil longs. World oil demand will fall this year because of recession and the growth of alternative energy, OPEC President Chakib Khelil said in remarks published on Monday.
Khelil maintained that oil prices were high because of geopolitics, speculation and the dollar's fall.Two of Mexico's three main crude oil ports were closed to shipping on Sunday because of rough seas due to the proximity of tropical depression Arthur, the government said.
Dos Bocas and Cayo Arcas ports were shut for shipping while a third major crude terminal Coatzacoalcos remained open, the transport ministry said in a statement.
Arthur, the first named storm of the Atlantic hurricane season, highlighted the danger of supply disruptions. NYMEX July refined products contracts have taken over the front-month spots after June contracts expired on Friday.
NYMEX July heating oil was down only 0.86 cent or 0.23 percent to $3.6581 a gallon, trading from $3.6157 to $3.6785. Heating oil hit a record $4.0153 on May 22.
NYMEX July RBOB fell 2.90 cents or 0.87 percent to $3.3192 a gallon, trading from $3.3030 to $3.3616. RBOB hit a record high $3.52 on Thursday.The heating oil crack spread was at $27.92 after ending Friday at $26.65. The RBOB crack spread was at $13.48 after ending at $13.27 on Friday.
Oil dropped below $126 a barrel Monday on worries that prices are cutting into demand and as a probe into futures trading by a U.S. regulator continued to weigh on the market. Light, sweet crude for July delivery was down $1.81 to $125.54 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe.
On Friday, the contract settled at $127.35 a barrel, up 73 cents after dipping below $125 and then rebounding. July Brent crude futures fell $1.27 to $126.51 a barrel on the ICE Futures exchange in London.
Jitters about record high fuel and energy prices — particularly in the U.S., which has just started its summer driving season — have helped to pull oil off the $135.09 a barrel trading record hit May 22. Data from the U.S. Energy Department and Federal Highway Administration and several surveys in recent days suggest American consumers are driving less.
The decision by some countries in Asia, like Indonesia and Taiwan, to lower subsidies on oil products, also was seen as having a bearish effect on the market.
Additional selling pressure came with last week's announcement from the Commodity Futures Trading Commission about an investigation into possible price manipulation in oil futures markets. The commission also announced new rules designed to increase transparency of U.S. and international energy futures markets.
"There are more concerns on the high pricing we have seen, that it will have a negative impact on demand, and the fact that the CFTC is expanding its investigation of manipulation in the oil markets," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.