Oil Falls After Swinging In Lackluster Weekly Trade

|Bitumen Africa|


Saturday, June 1, 2024  13:00 AM

Oil futures fell alongside equity market's as trades await Sunday's OPEC+ meeting.

After the US holiday on Monday, Oil spent a week trading without a drop in volume.

West Texas Intermediate fell to near $77 a barrel as a lack of key catalyst meant crude was weighed down by broader risks.

Traders have turned their attention to OPEC+ as the cartel presses on with informal talks aimed at finalizing an agreement on Oil-Output cuts this weekend.

Yet in the US, the market is flashing signs of weakness as crude cargoes pile up on the Gulf Coast.

That glut highlights a key challenge the group faces as it seeks to rein in global supplies.

Saudi Arabic and it's partners are discussing extending about 2 million barrels per day of production curbs until the second half of the year.

According to their representatives, they are also considering the possibility of extending some restrictions until 2025.

Despite a meanderig weekly trading path, future's fell for the second straight time.

The decline is mainly deu to the easing of geopolitical risk that has translated into crude oil prices since October. In addition, there are signs of weakness in the physical market and low demand in the summer.

The prompt time spread for Brent futures is now in a bearish contango structure for the first time since January. it's worth noting that while Brent's move into contango is another indication of a softening market, the shift is likely to be brief with the July contract expiring Friday.

Tath said, the spread for August against September, currently in backwardation, has narrowd.


  • WTI for July delivery slipped 1.2% to settle at $76.99 in New York.
  • Brent for 0.9% lower to settle at $81.11 a barrel.
  • July futures, which expired Friday, dropped 0.3% to $81.62 a barrel.
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