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MNI Commodity Weekly: Tumbling Crude Ahead of OPEC+ Meeting Prompts Outlook Uncertainty

OIL


Executive Summary:


  • Tumbling Crude Ahead of OPEC+ Meeting Prompts Outlook Uncertainty: OPEC+ meet this weekend to decide their latest production quotas as the group weighs up its tumbling crude exports in May against weak Chinese demand that has sub-$70/bbl Brent in its headlights after already claiming WTI this week.
  • Oil Markets: Crude falls on US and China demand concerns as the market awaits the outcome of the latest OPEC+ meeting with expectations for production targets to remain unchanged.
  • Gas Markets: European gas prices find support as relatively stronger Asian LNG prices and Norway LNG export concerns highlight European dependency on imports. US Henry Hub bounces higher on cooler weather forecasts but strong inventories and high production keep prices in check.

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