Crude oil prices made gains but worries remain

As crude oil prices finished higher on Tuesday, it still raised concerns in the industry of “contango,” the term that describes when prices for immediate supply are lower than for later delivery. It suggests the available current supply is abundant and that energy demand is falling.

Analysts concluded that investors took another look at predictions of a looming glut of crude oil in the world and as a result, prices rose.

Brent crude futures rose 31 cents, or 0.5%, to settle at $61.32 a barrel, while U.S. West Texas Intermediate crude futures for November delivery, which expired on Tuesday’s settlement, closed up 30 cents, or 0.5%, at $57.82.

Industry observers still believe there could likely be global economic growth and it will slow demand for oil. The belief persists as the U.S. and China trade spat is ongoing, even as President Trump prepares to meet next week in South Korea with China’s Xi Jinping.

Natural gas prices recorded another improved day with a more than 2% gain, settling at $3.484 MMBtu after a gain of $0.087 or 2.56%.

A day after nearly all Oklahoma energy stocks we follow recorded gains, Tuesday’s trading was just the opposite—nearly all finished the day in negative territory.

The biggest percentage loss was more than 11% for Stardust Power while most other firms recorded moderate losses including a more than 2% drop for Alliance Resource Partners and Empire Petroleum Corp.