Crude Markets Flat Ahead of OPEC+ Meet

Crude prices remain roughly in the middle of the range-bound $80-85/bbl Brent channel they have traded in through May, failing to hold up gains on Wednesday.

• Brent JUL 24 down -0.2% at 83.41$/bbl
• WTI JUL 24 down -0.2% at 79.08$/bbl
• Gasoil JUN 24 down -0.6% at 747$/mt
• WTI-Brent down -0.03$/bbl at -4.32$/bbl
• Markets are looking ahead to the OPEC+ meeting June 2 where the group are widely expected to rollover current cuts into the second half of the year.
• The prompt timespread for Brent crude is getting close to a bearish contango structure that indicates supply is abundant when compared to demand.
• Brent JUL 24-AUG 24 up 0.01$/bbl at 0.18$/bbl
• Brent AUG 24-SEP 24 down -0.02$/bbl at 0.38$/bbl
• API figures, out late on Wednesday showed crude stocks were down by 6.49 million barrels in the week ended May 24, with gasoline inventories down by 452,000 barrels and distillates up by 2.045 million barrels.
• The EIA report will be out later on Thursday, a day delayed because of the Memorial Day Holiday weekend in the U.S.
• Oil markets are also looking towards signs of direction from the U.S. over fears of higher rates for longer which has weighed on oil through the later half of May.
• The Fed is now seen cutting rates in September at the earliest, compared to a June start that had been expected by markets at the beginning of the year.
• Middle East tensions continue to provide support after Israel said it probably won’t be able to defeat Hamas this year and Houthis remain determined in their attacks on ships in the Red Sea.
• US 321 crack down -0.2$/bbl at 23.73$/bbl
• US ULSD crack down -0.1$/bbl at 23.56$/bbl