Oil Summary at European Close: Crude Ticks Up on Day

Crude markets are trading higher on the day, although remain rangebound based on prices throughout May. Focus is shifting to market fundamentals, such as OPEC+ policy and global demand

• Brent JUL 24 up 0.6% at 83.28$/bbl
• WTI JUN 24 up 0.9% at 78.99$/bbl
• The crude forward curve remains in backwardation with time spreads stabilising after narrowing throughout most of April.
• The latest EIA US drilling productivity report is due for release today at 14:00ET
• Iraq is committed to OPEC voluntary oil production cuts and will cooperate with efforts to achieve more stability in global oil markets according to Iraq’s oil minister on May 12.
• Kuwait raised the OSP for KEC to Asia in June to $2.35/bbl above the average of Oman/Dubai.
• Oil output in Nigeria rose 4.1% in April from March to 1.28mbbls according to Nigerian Upstream Petroleum Regulatory Commission.
• Canadian oil firms are pushing the operators of the TMX pipeline to change specifications to improve the value of the crude carried.
• Maintenance is expected to result in a sharp drop in crude flows out of Guyana – a surging area of global growth over the last year.
• China’s commercial crude oil port inventory is likely to fall following a recent short-lived rebound, according to OilChem.
• OPEC+ producers should consider any impact of decisions on higher oil prices and inflation when they meet next to decide on their oil production cuts, said EIA’s Fatih Birol.
• Global oil prices have slipped lower since mid-April due to little impact on oil flows despite numerous factors such as Red Sea passage, Russian refinery oil attacks or Gaza spillover according to Vitol’s Head of Asia Mike Muller.