[New York Close] WTI Fluctuates Again... S&P Challenges Largest Monthly Rise Since 1987

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] As international crude oil prices fluctuated, the New York stock market also failed to maintain its rebound trend.

On the New York Mercantile Exchange (NYMEX), June delivery WTI closed at $12.34 per barrel, down 3.4% ($0.44). WTI experienced extreme volatility throughout the day. Early in the session, it fell nearly 20%, raising concerns about dropping into single digits, but then reversed to an upward trend. Although it ultimately closed lower, it showed signs of finding a bottom.

WTI had recorded a 20% decline the previous day after the US Oil Fund, a representative US crude oil exchange-traded fund (ETF), announced a reduction in its holdings of June and July WTI contracts.

The recovery in the decline on this day was interpreted as reflecting expectations that the reopening of economic activities in some states such as Texas, following Georgia, would slightly delay the point at which oil storage tanks become full.

Unlike WTI, June Brent crude oil rose, regaining the $20 per barrel level, demonstrating that the epicenter of the crisis in the oil market is WTI.

The drop in oil prices turned the New York stock market, which was challenging a five-day consecutive rise, into a late-session decline.

On the New York Stock Exchange, the Dow Jones Industrial Average fell 32.23 points (0.13%) to 24,101.55, the S&P 500 dropped 15.09 points (0.52%) to 2,863.39, and the Nasdaq Composite declined 122.43 points (1.40%) to 8,607.73.

Although there were concerns that the indices might fall during the earnings season, the market has not easily declined. CNBC reported that the S&P 500’s monthly gain this month is the largest since 1987.

Unlike Coca-Cola, which reported earnings the day before, competitor PepsiCo posted better-than-expected results driven by strong performance in its snack segment. Alphabet, Google's parent company, released earnings after the market closed, which were also evaluated as exceeding expectations.

June delivery gold closed at $1,722.20 per ounce, down 0.09% ($1.60) from the previous day.