Oil End of Day Summary: Crude Falls

Crude markets are falling today despite a larger than expected draw in US stocks, coupled with expectations of OPEC+ rolling over its voluntary cuts. Pressure comes from a bleaker demand outlook worsened by likely delays in Fed interest rate cuts.

• WTI JUL 24 down 1.6% at 77.99$/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.
• OPEC+ members who have agreed to voluntary cuts totalling 2.2m b/d are discussing extending them until year-end, Reuters said, citing sources within the bloc.
• Consensus among analysts is that OPEC+ will extend their voluntary production cuts in Q2.
• EIA Weekly US Petroleum Summary - w/w change week ending May 24 - Crude stocks -4,156 vs Exp -902, Crude production 0, SPR stocks +485, Cushing stocks -1,766.
• Saudi Aramco may cut prices for its crude sold to Asia in July for the first time in five months, according to a Bloomberg survey.
• The Russia Black Sea port was warned of a potential attack resulting in an air raid siren sounding early on Thursday but nothing developed.
• With more crude directed towards Asia and some cargoes on floating storage, WTI and North Sea crude on the water is rising markedly according to Vortexa.
• Asia’s imports of crude oil rose to the highest level in 12 months in May, driven by strength in India’s buying appetite, Reuters said.
• OPEC+ is courting emerging oil producers in Africa, such as Namibia, Ghana, and Senegal, for potential membership to the bloc, Platts said.
• Oil markets have calmed following major disruptions over recent years, with production and consumption growing at similar rates, Reuters’ analyst John Kemp said.