Categories: Market Overview

Oil Slips With Recent Rally to 2018 High Running Out of Steam

Oil edged lower as a recent rally to the highest level since October 2018 cooled, although prices are still set for a second straight weekly advance following a raft of bullish calls on the demand outlook. Futures in New York traded near $69 a barrel after easing on Thursday as a stronger dollar made commodities priced in the U.S. currency more expensive. A significant draw in American crude stockpiles added to positive signs for the market, but financial flows into West Texas Intermediate and global Brent have been muted, despite headline prices clawing back pandemic losses.

Still, some producers are positioning for an improving outlook. Saudi Arabia increased oil prices for customers in Asia by more than anticipated for July after OPEC+ predicted on Monday that the market was rapidly tightening. OPEC+ may need to keep adding barrels to the market in August or September to meet the recovery, according to Gazprom Neft PJSC Chief Executive Officer Alexander Dyukov. The alliance this week ratified an output boost for July, but didn’t give any hints on future supply moves. The prospect of a speedy return of Iranian barrels has also waned with talks on a nuclear deal dragging on.

American crude inventories slid by 5.08 million barrels last week, double the forecast decline in a Bloomberg survey, although fuel inventories expanded. The U.S., China and Europe have rebounded strongly from the pandemic and have helped underpin a more than 40% gain in oil this year.

U.S. gasoline stockpiles rose by about 1.5 million barrels last week ahead of the Memorial Day weekend, according to data from the Energy Information Administration, compared with a forecast for a draw. Distillate inventories — a category that includes diesel — climbed for the first time since early April.

Oil Slips With Recent Rally to 2018 High Running Out of Steam, Bloomberg, Jun 4

The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team

Recent Posts

Dollar: Slowing Momentum, Same Direction

The dollar has paused its strengthening, as weaker-than-expected inflation data reduces fear of future Fed…

2 hours ago

Bitcoin Fell Back to Local Support

Bitcoin finds support near the 50-day moving average, but further declines in the stock market…

4 hours ago

EURCHF Wave Analysis 20 December 2024

- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…

3 days ago

USDCHF Wave Analysis 20 December 2024

- USDCHF reversed from resistance zone - Likely to fall to support level 0.8860 USDCHF…

3 days ago

The US dollar ends the year on a strong note

The US dollar is at two-year highs. Factors such as changes in the Fed's monetary…

3 days ago

How deep will crypto dive?

The crypto market is experiencing a decline, with a potential further drop in value. Bitcoin…

3 days ago

This website uses cookies