Crude Continues Falling On US Rate Fears

Oil prices continued falling during APAC trading on the back of hawkish FOMC minutes. If it continues, it will make four straight daily declines. WTI is down 0.7% to $77.04/bbl but off the intraday low of $76.83, to be down 3.2% this week. Brent is 0.6% lower at $81.45/bbl after a low of $81.21. Both have remained above initial support levels. The USD index is down 0.1%.

• EIA reported US crude inventories rose 1.83mn barrels last week but they were boosted by the largest adjustment factor since November. Gasoline demand rose 0.44mbd to 9.315mbd and inventories fell 945k barrels but the market looked through this positive information once it became concerned that Fed easing would be delayed further.
• While prices are lower this week, they are within recent ranges as the market waits for the June 1 OPEC meeting where it is widely expected to extend output cuts into H2. Russia has said it will present a plan to deal with its overproduction.
• The Fed’s Bostic and BoE’s Pill appear. US jobless claims, preliminary May PMIs and new home sales print. There’s also euro area May PMIs & consumer confidence, and Q1 negotiated wages. The G7 central bank governors and finance ministers meeting is taking place.