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Oil Markets Weak Ahead of Summer Driving Season

OIL
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Oil prices are steady Friday having slipped back further this week over global demand concerns, U.S. rate fears and while the market awaits OPEC output direction.

  • Brent JUL 24 down 0% at 81.35$/bbl
  • WTI JUL 24 down -0.1% at 76.81$/bbl
  • Gasoil JUN 24 down -1.1% at 737.5$/mt
  • WTI-Brent down -0.05$/bbl at -4.53$/bbl
  • Brent crude futures closed at their weakest point since January on Thursday while WTI futures hit a three-month low.
  • Brent futures were headed for weekly declines of more than 3%, while WTI futures were poised for a slide of nearly 4% on Thursday.
  • Brent JUL 24-AUG 24 up 0.02$/bbl at 0.27$/bbl
  • Brent AUG 24-SEP 24 up 0.01$/bbl at 0.43$/bbl
  • Markets remain unsure about the direction of Fed rate policy as fears over higher rates for longer weigh on demand concerns.
  • This upcoming Memorial Day Weekend marks the start of the US summer driving season against a backdrop of growing but seasonally sluggish demand. AAA predicts record travel but factors like higher efficiency, electric cars and shorter journeys are denting consumption.
  • US product supplied, a proxy for gasoline demand jumped over 400kbd on a weekly basis in the latest data but will need to sustain through the holiday to begin a meaningful trend.
  • Oil markets are focused on the OPEC+ meeting set for June 1 where markets largely expect the voluntary cuts to be extended into the second half of 2024. Due to their voluntary nature, something may be announced before the actual meet.
  • The group knows that without its sustained cuts, which were meant to be temporary, oil prices would be significantly lower under current market conditions and a geopolitical risk premium has long since faded.
  • US 321 crack down -0.1$/bbl at 25.94$/bbl
  • US ULSD crack down -0.4$/bbl at 24.86$/bbl
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Oil prices are steady Friday having slipped back further this week over global demand concerns, U.S. rate fears and while the market awaits OPEC output direction.

  • Brent JUL 24 down 0% at 81.35$/bbl
  • WTI JUL 24 down -0.1% at 76.81$/bbl
  • Gasoil JUN 24 down -1.1% at 737.5$/mt
  • WTI-Brent down -0.05$/bbl at -4.53$/bbl
  • Brent crude futures closed at their weakest point since January on Thursday while WTI futures hit a three-month low.
  • Brent futures were headed for weekly declines of more than 3%, while WTI futures were poised for a slide of nearly 4% on Thursday.
  • Brent JUL 24-AUG 24 up 0.02$/bbl at 0.27$/bbl
  • Brent AUG 24-SEP 24 up 0.01$/bbl at 0.43$/bbl
  • Markets remain unsure about the direction of Fed rate policy as fears over higher rates for longer weigh on demand concerns.
  • This upcoming Memorial Day Weekend marks the start of the US summer driving season against a backdrop of growing but seasonally sluggish demand. AAA predicts record travel but factors like higher efficiency, electric cars and shorter journeys are denting consumption.
  • US product supplied, a proxy for gasoline demand jumped over 400kbd on a weekly basis in the latest data but will need to sustain through the holiday to begin a meaningful trend.
  • Oil markets are focused on the OPEC+ meeting set for June 1 where markets largely expect the voluntary cuts to be extended into the second half of 2024. Due to their voluntary nature, something may be announced before the actual meet.
  • The group knows that without its sustained cuts, which were meant to be temporary, oil prices would be significantly lower under current market conditions and a geopolitical risk premium has long since faded.
  • US 321 crack down -0.1$/bbl at 25.94$/bbl
  • US ULSD crack down -0.4$/bbl at 24.86$/bbl