Crude Slightly Higher As Waits For US Employment Data

Oil is off the intraday lows to be up about 0.2% during the APAC session today as it trades in narrow ranges ahead of US May payroll data out later. WTI is 0.2% higher at $75.73/bbl up from the low of $75.41 earlier. Brent has struggled to hold above $80 today where it started the session. It is currently up 0.2% to $80.01/bbl after falling to $79.73. The USD index is little changed.

• Crude found some support later this week as OPEC members reassured markets that they will alter their plan to begin a reduction in output cuts from October if it looks like there will be excess supply. The initial news drove markets lower and prices are currently down around 1.5% this week.
• Some OPEC members have already been overproducing and quota compliance has been a problem, but Russia said it would reduce output to make up for its previous overproduction.
• Later US May payrolls are released and a 180k rise is forecast with the unemployment rate stable at 3.9% (see MNI Payrolls Preview). Oil markets will watch this closely and likely react to any changes in Fed Fund expectations. The FOMC meets on June 12.
• The Fed’s Cook gives a commencement speech and the ECB’s Lagarde and Schnabel speak. German trade and IP for April and Canadian May employment also print.