Oil prices drift lower but remain stuck in narrow range as market struggles to find catalysts

Crude oil futures fell more than 1% on Tuesday in the absence of major market catalysts to support prices.

U.S. crude oil and global benchmark Brent have traded in a $3 range this month since selling off from April highs after traders rolled back geopolitical risk premium as fears of a wider Middle East war eased.

Investors are now focusing more on fundamentals but the lack of near-term catalysts will likely keep prices rangebound for the time being, Helima Croft, head of commodity strategy at RBC Capital Markets, told clients in a Tuesday note.

Here are today’s energy prices:

• West Texas Intermediate June contract: $78.31 a barrel, down $1.49, or 1.87%. Year to date, U.S. crude oil is up 9.3%.
• Brent July contract: $82.22, down $1.49, or 1.78%. Year to date, the global benchmark is up 6.76%.
• RBOB gasoline June contract: $2.49 per gallon, down 1.8%. Year to date, gasoline futures are up 18.69%.
• Natural gas June contract: $2.68 per thousand cubic feet, down 2.33%. Year to date, gas is up 6.88%.

Production cuts by a coalition of OPEC+ members have provided a floor for oil prices after last month’s selloff. The cartel will meet next weekend to review its production policy.

John Evans, analyst at oil broker PVM, said the market will increasingly focus on how OPEC+ may react to the current oil price action as the meeting draws closer. The current softness in the market likely does not support bringing OPEC supply back on the market, Evans said.