Oil Summary at European Close: Crude Slips

Crude markets have regained some of their losses after EIA data showed a small increase in fuel implied demand despite a build in crude stocks. Crude continues to face pressure from concerns that interest rates will remain ‘higher for longer’.

• Brent JUL 24 down 0.5% at 82.49$/bbl
• WTI JUL 24 down 0.4% at 78.32$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending May 17: Crude stocks +1,825 vs Exp -1,922, Crude production 0, SPR stocks +993, Cushing stocks +1,325
• Venezuelan opposition primary winner Maria Corina Machado, banned from holding office, is campaigning on behalf of her replacement Edmundo Gonzalez.
• Large oil projects are expected to nearly double Iraq’s crude production in the next few years to around 8mn bpd according to an Iraqi deputy.
• Improved arbitrage economics and firmer demand for petrochemical feedstocks has boosted naphtha-rich WTI crude flows to India in April to a near-year high, Argus said.
• VLCC rates on the USGC hit a four-month high on May 17 amid elevated APAC demand for US crude, particularly from China, Argus said.
• Oil markets have lost all of the geopolitical risk premium that had been driving markets higher in recent months and now looks towards the upcoming OPEC meeting according to RBC’s head of commodity strategy Helima Croft.
• MNI COMMODITY WEEKLY (Oil & Oil Products): Global Refining Additions Shaping New Markets – Full piece here: